There's More to Disney Than Snow White This Year
The media giant's latest film is off to a disappointing start, but the story is far from over.
It's not what Walt Disney (NYSE: DIS) was hoping for, but Snow White's lackluster theatrical debut over the weekend still leaves room for shareholders to go from Grumpy to Happy. The film grossed $43 million in domestic ticket sales and $87 million worldwide. Industry watchers were targeting at least $100 million in global box office receipts, and that figure had been pared back in recent months.
The market's first take on the live-action reboot's debut wasn't a dealbreaker. Disney shares actually moved higher on Monday, closing above $100 for just the second time in the past two weeks. It was a generally buoyant day for stocks, but for the media giant's shares to rise despite a potential matinee misfire is a good sign that investors are looking beyond this film. This is still likely to be a good year for Disney's studio business. You just have to disregard the occasional poisoned apple.
Snow White reportedly cost a hefty $250 million to make, and that's before marketing and distribution costs. Disney will probably have to take a sizable financial hit on the the production once all of the beans have been counted. Optimists can point to Mufasa: The Lion King that came out three months ago to an even softer debut, and it still managed a fairytale ending. It collected just $35.4 million in stateside ticket sales for its opening weekend, only to top $719 million worldwide by the end of its cinematic run. Still, that's the exception and not the rule when an established franchise faceplants out of the starting gate.
