The Walt Disney Company (DIS - Free Report) seems to be gaining ground with its latest release Star Wars: The Last Jedi raking in $450 million in the opening weekend. This is the second flick under the Lucasfilm’s latest Star Wars trilogy, the first one being Star Wars: The Force Awakens. In fact, this eighth episode of Star Wars has set expectations soaring for the final part of the trilogy — Star Wars: Episode IX in the Star Wars saga — scheduled for release in December 2019.
The latest movie has got off to a great start in the domestic market, with the film earning $220 million on its opening weekend in the United States and Canada. Also, this is the second largest opening weekend after the Star Wars: The Force Awakens in 2015.
In fact, Star Wars: The Last Jedi is flying high at the box office with its overseas collection of $230 million in the opening weekend, almost at par with the analysts’ expectations. This new movie is the fifth largest debut ever, excluding the Chinese market — the world’s second largest movie market. Here, the movie is to release on Jan 5.
Moreover, this media behemoth has a solid track record of box-office hits for the last couple of years. In 2015, the company had released Avengers: Age of Ultron, Marvel's Ant-Man, Inside Out, Cinderella and Star Wars: The Force Awakens. Also, 2016 has been a magnificent year for the company’s movie business backed by the release of Captain America: Civil War, Finding Dory and Zootopia, which surpassed $1 billion at the box office. Furthermore, Jungle Book was very successful with a worldwide collection of $966 million.
However, the company has disappointed its viewers in 2017 as the year has been dull for the movie industry. Nevertheless, we believe Star Wars: The Last Jedi’s success to favor the company’s box office collections and profitability in the coming days.
In addition, the recent deal between Disney and Twenty-First Century Fox, Inc. (FOXA - Free Report) is likely to enhance the company’s Studio Entertainment segment and overall performance. Per the deal, Disney will acquire majority of Twenty-First Century’s assets worth $52.4 billion that include its Film and Television studios along with cable and international TV businesses. The total transaction amount is nearly $66.1 billion that comprises $13.7 billion of Twenty-First Century Fox’s net debt.
In the past three months, Disney’s shares have gained 13%, outperforming the industry's growth of 3.1%. This Zacks Rank #3 (Hold) company shares space with Time Warner Inc. and Viacom, Inc. (VIAB - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>