Disney (DIS) Stock Up on 'Inside Out' Box Office Success

NEW YORK (TheStreet) -- Shares of the Walt Disney Co. (DIS) are up by 1.24% to $114.03 in mid-morning trading on Monday, as over the weekend "Inside Out" the latest animated film from Disney/Pixar enjoyed a $91.1 million domestic launch. This was the second-highest opening weekend in the studio's history, the Los Angeles Times reports.

In 2010, 'Toy Story 3' earned more with a $110.3 million opening weekend.

"Inside Out" beat expectations of $60 million and may be the first Pixar film not to debut at number one, the Times noted. Universal's (CMCSA) 'Jurassic World' is still dominating the box office.

Disney's strategy when it came to getting exposure for "Inside Out" included showing it at Cannes, the CinemaCon trade show and hosting other screening in order to generate an early buzz, the Times added.

"It all culminated in a mass critical reception that basically told consumers you'd be crazy not to see this movie," Dave Hollis, the head of distribution at Disney told the online publication.

"It helped create urgency for it, becoming a motion picture event, a cultural event," Hollis continued.

"Inside Out" centers on 11-year-old Riley and how the various and colorful emotions in her head help her to cope with a move from the Mid-west to San Francisco.

Separately, TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DIS's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DISNEY (WALT) CO has improved earnings per share by 13.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $4.25 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($5.07 versus $4.25).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 10.0% when compared to the same quarter one year prior, going from $1,917.00 million to $2,108.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has increased to $2,918.00 million or 15.47% when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also modestly surpassed the industry average cash flow growth rate of 15.14%.
  • You can view the full analysis from the report here: DIS Ratings Report

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