This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pixar Packs a Punch

Updated from 5 p.m.

Pixar (PIXR) took investors' breath away late Tuesday, posting a much-stronger-than-expected third quarter.

The animation studio made $27.4 million, or 22 cents a share, compared with $22.4 million, or 19 cents, a year earlier, the Emeryville, Calif.-based company said in a statement. Sales rose 3% to $45.8 million.

"Our performance in the quarter highlights the ongoing value of our growing film library," CEO Steve Jobs said in a statement.

The company was expected to earn 11 cents on sales of $30.6 million, according to analysts surveyed by Thomson Financial. Shares rose $2.02 to $52.90 late Tuesday.

Jobs, who also runs Apple (AAPL), is reportedly interested in selling Pixar to partner Disney (DIS - Get Report). Pixar has produced such hits as Toy Story and The Incredibles. Relations have warmed since the departure of former Disney chief Michael Eisner, though Disney has yet to make a formal offer, The New York Times said. Pixar said on its conference call that the sides are in "deep discussions," Reuters reported.

Disney's hand in any possible negotiation may have been helped by the unexpectedly strong performance of its animated fable Chicken Little, the top-grossing film last weekend. Investors had worried that Disney was too dependent on Pixar for animated hits.

Pixar's distribution agreement with Disney expires after the release of Pixar's Cars, the company's seventh film, due next spring. Jobs has said he wants a new distribution agreement for Pixar in place by the end of the year.

In the earnings press release, Jobs predicted that people would like Cars.

"It's going to take your breath away," he said.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
APPL $0.00 0.00%
DIS $93.90 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs