Pixar Earnings Top Forecasts

Coming off its record boxoffice weekend for "Monsters, Inc.," Pixar on Wednesday reported larger-than-expected gains for the third quarter fueled by sales of domestic television rights for its "Toy Story" franchise to ABC as well as continued merchandise sales and royalties from its library properties.

The Emeryville, Calif.-based company posted earnings for the quarter ending Sept. 29 of $6.2 million, or 12 cents a share, down from $8.8 million for the same period last year. Revenue came in at $11.3 million, down from $17.3 million a year earlier. Analysts polled by Thomson Financial/ First Call had expected earnings of 10 cents a share.

Chief financial officer Ann Mather said the company has raised its earnings forecast for the year to 60 cents a share, compared with a previous range of 50 cents-58 cents a share.

During a conference call with investors, CEO Steve Jobs expressed his joy with "Monsters, Inc.'s" opening weekend boxoffice performance of $62.6 million, the highest-grossing weekend ever for an animated film, and elaborated on whether Pixar will attempt to renegotiate its five-film co-production deal with Disney before the deal is completed. With the delivery of "Monsters," the companies have three more features to make per terms of the agreement.

"We have a great relationship with Disney at every level," Jobs said. "We are going to continue to make good movies and be good partners. We are not going to make a decision on the deal until we get closer to the end of it."

He also confirmed that there will not be a "Toy Story 3" in the current deal. "Life is long, and who knows what will happen down the road. All three movies left in the deal have been determined," he said.

Pixar shares rose 1.6% on Wednesday to 35.05.