Pixar Animation Studios should beat forecasts for second-quarter earnings, according to Prudential Securities analysts.
Pixar is Apple CEO Steve Jobs’s other business interest. The company is predicted to report earnings of 27c a share on the back of the international release of its successful children’s film, Monsters, Inc.
However, the analysts said that without a film release scheduled for the next 12 months, “shares are likely to trade in a narrow range.
“We continue to believe that the lack of a movie release in the next year could cause the stock to languish,” they said. As a result, the company’s shares have been given a ‘hold’ rating.
An attractive investment The analysts added: “For long-term investors, we believe Pixar is an attractive – although high risk – investment opportunity. In our opinion, Pixar has done a fantastic job of monetizing what is now a four-picture library, and has done so in ways that we think grows the franchise without overexposing the company to consumers."
September 17 sees the film’s home-video release. Cinema screenings have generated international Q2 box office sales of over £104 million – and £7 million in the US.