Steve's Other Job Is Going Well Too: Pixar Rocks Past Analyst's Projections

by , 12:00 PM EDT, August 11th, 2000

Steve Jobs' other business, Pixar Animation Studios Inc. (PIXR) announced better-than-expected earnings, including higher revenues, yesterday after the bell.

Pixar is world renown for the modern computer animation classics, "Toy Story" and "A Bug's Life," but for Mac aficionados, Pixar is best known as Mr. Jobs' other job. Steve Jobs is the CEO and founder of both Pixar and Apple.

The animation studio announced earnings of $8 million or $0.16 per share, beating analysts' forecast for $6.4 million or $0.14 per diluted share for the second quarter. Revenues increased to $18.3 million from $13.5 million in the second quarter.

Late yesterday afternoon Steve Jobs appeared on CNBC to guide analysts' earnings target for Pixar higher in fiscal 2000, from $1.25 to $1.30 per diluted share.

The brokerage house of Chase H&Q analyzed Pixar's outlook going forward, "Majority of Toy Story 2 box office revenue has been recognized with the next revenue cycle of ancillary revenues starting October 17 with the home video release (of Toy Story 2) on both DVD and VHS. The company feels it is still on track to begin releasing a feature film a year, beginning with Monsters, Inc."

Chase H&Q maintains a "buy" rating on Pixar's stock.

Reuters reported Pixar's, "fourth film, Monsters Inc., is due to be released in November 2001."

Meanwhile, the 1998 animation, A Bug's Life, will be offered on pay-per view basis for subscribers to DirecTV, InDemand, EchoStar, and TVN distribution services after Oct. 1, 2000. This is the first television distribution of a Pixar/Disney animation.

From the Pixar press release:

Pixar created and produced the first computer-animated feature film, the Academy Award winning Toy Story, released in 1995. Pixar has since released two more animated features: A Bug's Life, the highest grossing animated film released in 1998; and Toy Story 2, the highest grossing animated film released in 1999.

Pixar's stock (PIXR) was trading lower by 5/16 at $33 1/2 per share this morning.

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