Walt Disney Marvel Studios owned by DIS and SonyThe SONY co-production Spider-Man: No Way Home has become the first film amid the pandemic to cross the $ 1 billion mark at the global box office in 2021, according to a latest report from Bloomberg.
The latest Marvel Cinematic Universe film hit $ 1.05 billion at the box office over the Christmas weekend, beating the Chinese film The Battle of Changjin Lake released in November 2021.
Spider-Man earned around $ 81.5 million in domestic ticket sales in the second weekend of its release. The superhero film grossed $ 467.3 million in North American theaters and an additional $ 587.1 million in international markets.
Star Wars: The Rise of Skywalker, released in 2019, was the last movie to hit $ 1 billion in ticket sales worldwide.
Walt Disney Company Price and Consensus
Walt Disney Company Price-Consensus-Graphics | The Walt Disney Company Quote
IMAX benefits from the release of Disney’s blockbuster
The film, which was shot with IMAX, IMAX-certified digital cameras were shown in IMAX theaters, in IMAX’s exclusive extended aspect ratio of 1.90: 1 for the entire length of the film. This replaces the Disney and IMAX collaboration, allowing consumers to watch multiple Marvel movies in IMAX’s extended aspect ratio format.
IMAX took a huge bite out of the global box office in the third weekend of December, as Disney and Sony’s Spider-Man shipped $ 36.2 million on around 834 IMAX screens in 77 global markets, including 22 million dollars in North America.
Spider-Man’s latest hit provides an opportunity to sell merchandise
Marvel Comics sold the film rights to the Spider-Man characters to Sony in the 1990s. In 2015, however, Sony and Disney reached an agreement that the Marvel Cinematic Universe could incorporate Spider-Man into its films, with Sony retaining the rights. . Disney and Sony renegotiated that deal in 2019, splitting production costs and box office revenue.
So, Disney, owner of the Marvel Cinematic Universe, is unlikely to make any money from the film’s box office revenue. Instead, the primary source of business profit for this successful Marvel business will come primarily from merchandise sales.
Sales of merchandise for the Spiderman franchise have tracked box office receipts in the past. It has been observed that the sale of Spiderman merchandise is directly proportional to the success of a Spiderman movie.
This should boost income from consumer products. In the fourth quarter of fiscal 2021, consumer products revenue declined 3% year-on-year to $ 1.28 billion. This was due to the low royalties levied on game titles – Marvel’s Avengers and Twisted Wonderland.
Zacks Rank and a stock to consider
Currently, Disney holds a Zacks # 5 rank (strong sell).
One of the top-ranked stocks in the consumer discretionary sector is Funko FNKO, which sports a rank 1 of Zacks (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Funko, engaged in the manufacture of a wide range of consumer products, has a surprise earnings over the last four quarters of 110.7% on average.
Zacks’ consensus estimate for Funko’s sales and EPS for the current fiscal year suggests an increase of 48.3% and 240.5%, respectively, from the previous year’s tally. FNKO has a long-term profit growth rate of 27.71%.
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The Walt Disney Company (DIS): Free Stock Analysis Report
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