Will Pixar ----------------------- A. Meet Q2 earnings estimates B. Beat Q2 earnings estimates C. Fall below Q2 earnings estimates
Optional: Provide one or two reason for your answer
tbs_theman - Pixar will beat estimates (msg #36515) Due to higher than expected licensing revenue from foreign markets.
RumorWhisperOrBuzz - Pixar will beat estimates (msg #36517) Due to continued strength in worldwide sales of their four DVDs
Walt - Pixar will beat estimates (msg #36518) Because Pixar always meets or beats earnings
Bzap2000 - Pixar will beat estimates (msg # 36527) Because Ann has been having a lot of good hair days. (Inside joke)
Readytosplitreadytotriple - Pixar will beat estimates (msg #36587) Because Pixar is a well managed, money making machine
Hogsgotoslaughter - Pixar will beat estimates (msg #36590)
ddbelec1 - Pixar will beat estimates (msg #36592) Because Pixar gives guidance that is lower than is actually expected and analysts underestimate residual cash flow.
pick_czar - Pixar will beat estimates (msg #36620) Because Pixar guides the estimates to the low side, the DVD market is taking off, the rental market is pretty hot, and Toy Story I & II are a favorite first movies to own.
Mosa80110 - Pixar will beat estimates (msg #36692)
There is no use guessing because we shall know the answer tomorrow:
" July 11, 2001 - Pixar Animation Studios today announced that management will report second quarter 2001 earnings results on Thursday, August 9, 2001 following market close. Pixar's chariman and chief executive officer, Steve Jobs, and executive vice president and chief financial officer, Ann Mather, will conduct an earnings release teleconference to discuss information relevant to the second quarter results as well as other recent or upcoming developments affecting the company's operations. The teleconference will be held on Thursday, August 9, 2001 at 5:00 PM Eastern Time, 2:00 PM Pacific Time. To participate in the teleconference, please call 888-209-3777 (U.S.) or 212-271-4770 (Int'l) approximately 10 minutes prior to the start time. A replay of the call will be provided through Monday, August 13, 2001 up until midnight Eastern Time. To access the replay, please call 800-633-8284 (U.S.) or 858-812-6440 (Int'l) and reference the reservation code: 19322620.
Pixar will also provide live audio streaming of its second quarter results conference call. "
I haven't really been following the earnings picture as closely as I had in the past. It really all depends upon when Disney pays Pixar, so it's really just a guessing game.
But something in the call really caught my attention - the 'Classic Treasures' - which I don't think have been factored into Pixar's guidance for this year's earnings. If the below sales are successful, Pixar could earn up to $1.00/share this year. Here are the relevant quotes from Ann Mather:
"Walt Disney Television International will be marketing a 'Classic Treasures' package. . . The package includes broadcast rights to our three feature films, TS, TS2 and ABL, along with 2 other Walt Disney classic pictures. The titles are being marketed, but deals have not yet been finalized. The potential license fees from international network television distribution could range from 10-15% of the films' international box office receipts. This amount represents film revenue that would be split between Pixar and Disney on a 50/50 after a deduction of associated distribution costs and fees.[Later in the call Ann responded to an analyst's question] There haven't been any sales made yet, but when the sales are made it is possible for us to recognize revenue as soon as the titles are available for distribution, which is pretty much immediately, so we could expect to see some revenues in this fiscal year."
I've decided to play the earnings game since the time is near.
Like the rest of you I expect Pixar to meet earnings, yet I don't think that it is guaranteed that they will beat earnings.
My reasoning: According to the yahoo research page Pixar's head count now stands at 581 employees. From what I recall, this is a ten to twenty percent increase in head count over last year. This increase in head count may be great news for those hoping that Pixar will increase their production schedule, but additional heads cost money therefore reducing Pixar's ability to beat their numbers. Hopefully the cost of the additional employees will be worth it and Pixar will soon be able to announce plans for releasing one movie per year.