Thursday
To infinity and beyond? That was Buzz Lightyear’s catchphrase in the popular Toy Story movie. For its creator, Pixar (Nasdaq: PIXR), though, it’s often been a question worth asking regarding the company’s potential. It now has just one movie left to deliver under its contract with Disney (NYSE: DIS), where the companies split the profits down the middle after Disney takes its cut as film distributor. With Pixar ready to take in 100% of the profits on its future projects, the bottom line can look awfully sweet if the company is able to achieve the same kind of success that it has had in the past.
That doesn’t mean that Disney will be left out in the cold. Pixar’s last split was with its shares — not Mickey Mouse. There is still a chance that Disney and Pixar will be able to keep their distributor relationship going, though it obviously won’t be as lucrative for Disney as it used to be. Pixar — and Electronic Arts — have been winning stock recommendations in the Stock Advisor newsletter service. On Thursday, it will be Pixar’s turn to take to the earnings podium.
Last modified: April 30, 2005