Disney shares drop after Pixar delays two films
Shares of Walt Disney fell 2 per cent on Thursday, one day after the company delayed the release of two movies from its acclaimed Pixar animation studio, The Good Dinosaur and a sequel to 2003 hit Finding Nemo.
Pushing back Good Dinosaur to 2015 removes a major film from the media company’s movie slate next year, Wedge Partners analyst Martin Pyykkonen said. The postponement of both movies likely contributed to a decline in Disney shares, he said.
“You have just put a big vacancy in there in fiscal next year,” Pyykkonen said. Disney’s fiscal year begins in October.
Disney shares dropped 2 per cent to close at US$65.72 on the New York Stock Exchange.
The Good Dinosaur is now scheduled to reach theatres on Nov. 25, 2015, about 18 months after its original release date in May next year, Disney said in a statement on Wednesday. The movie is set in a world where dinosaurs and humans co-exist.
Pixar delayed the movie to provide time “to ensure we make the best film possible,” the studio said.
“We continue to believe at Pixar, ‘quality is the best business plan,’ and we live by that,” the statement said.
The Good Dinosaur moved to the release date previously held by “Nemo” sequel “Finding Dory.” Pixar pushed Dory to June 17, 2016, putting it in the summer movie season like the original film.
The new schedule will make next year the first year since 2005 that Pixar has not released a film. The studio’s hits include Toy Story, Cars and this year’s Monsters University, which has sold US$731 million worth of tickets around the world since its release in June, according to the Box Office Mojo website.