|[4:30 PM] Steve's Other Job Racks Up Impressive Results, Pixar Posts Blowout Quarter
Steve Jobs's other CEO position at Pixar has resulted in a stellar increase in that company's profits that surpasses even that of Apple. The company blew by analysts estimates for the quarter by over 100%, a rare occurrence indeed, and the company's stock shot up as a result. Pixar's revenues rose over 3000% from US$2.5 million to US$79.2 million from the same quarter last year. Profits rose 3625% from US$867,000 to US$32.3 million during the same to periods. Wall Street was ecstatic, raising the price of Pixar's stock to 40 1/2, a gain of 2 5/8 or 6.93%. The stock traded as high as 47 5/16 during today's trading. Analysts had pegged Pixar to post a US$.29 per share profit. The actual number came in at US$.63 per share.
The company cited unexpectedly good sales of A Bugs Life in the Video Cassette market. According to Pixar:
Pixar Animation Studios announced financial results for the third quarter of 1999 and for the nine months ended Oct. 2, 1999.
Revenues for the third quarter of 1999 were $79.2 million, compared with $2.5 million in the third quarter of 1998. Net income for the third quarter of 1999 was $32.3 million, compared with $867,000 for the third quarter of 1998. Diluted earnings per share for the third quarter of 1999 were $0.63, compared with $0.02 for the third quarter of 1998.
Revenues for the nine months ended Oct. 2, 1999 were $96.2 million, compared with $11.2 million for the nine months ended Sept. 26, 1998. Net income for the nine months ended Oct. 2, 1999 was $39.6 million, compared with $6.7 million for the nine months ended Sept. 26, 1998. Diluted earnings per share for the nine months ended Oct. 2, 1999 were $0.77, compared with $0.13 for the nine months ended Sept. 26, 1998.
For the 1999 fiscal year, Pixar expects to report diluted earnings per share of at least $0.85. The foregoing statement regarding Pixar's forecast for the 1999 fiscal year is forward-looking information, and actual results may differ materially. Among the factors that could cause actual 1999 results to differ are the following: (1) the timing of release of A Bug's Life home video in foreign markets, (2) the timing of Pixar's cash receipt of revenues from foreign home video sales of A Bug's Life and remaining domestic home video sales, (3) the timing of A Bug's Life merchandise sales and associated cash receipts and (4) the timing of distribution costs incurred for A Bug's Life.
Consensus estimated for the year had been pegged at US$.12 per share, well shy of the US$.85 that Pixar now expects to turn in. You can read more specifics on Pixar's financial performance in their full press release.
The Mac Observer Spin: It's good to see that Mr. Jobs's responsibilities appear to not be having any adverse affects on his second love of Pixar. If that were the case, it would be anyone's guess as to which job Mr. Jobs would choose.
In any event, a big Mac Observer congratulations to Pixar!