The massive box office success of
The Walt Disney Company
', the prequel to Pixar's 2001 hit '
' has created quite a buzz as it emerged as the highest grosser
this weekend, leaving behind Brad Pitt's '
World War Z'
is Pixar's 14th consecutive film, which opened as a top weekend
grosser and generated approximately $82 million from ticket
) owned Paramount Pictures' '
World War Z
' took the second position and grossed $66 million, while
Time Warner Inc.
Man of Steel'
, which was into its second week, generated $41 million in ticket
Though it is a bit early to estimate
University's impact on Disney's financials, yet we believe that
the film carries enormous prospect and expect it to generate
significant revenue for the company. The initial success also
suggests that the film will augur well for the company's studio
entertainment division, which is expected to be adversely
affected by the pre-release marketing expenses for
The Lone Ranger
during the third quarter of fiscal 2013.
Barring the near-term headwinds, we remain optimistic on the
long-term prospects of the studio entertainment division as the
segment has some big-ticket releases in its pipeline. We believe
this Zacks Rank #3 (Hold) company remains well positioned to
sustain its robust performance on the back of Parks and Resorts,
as well as the Studio and Media Networks divisions.
Walt Disney is one of the world's leading diversified
entertainment companies. Moreover, the company commands a
formidable portfolio of globally recognized brands, such as Walt
Disney, ABC, ESPN, Pixar, Marvel Entertainment, Touchstone
Pictures and now Lucasfilm, which offers a strong competitive
advantage to the company and bolsters its well-established
position in the market against other industry majors like
Lions Gate Entertainment Corp
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