Following opening weekend, Iron Man 2 reported a phenomenal $133.6 million in box office ticket sales, Paramount Pictures’ (VIA-B) single best debut of all time, as well as the fifth-best opening weekend in Hollywood history.
On April 29th, Viacom issued a first-quarter profit at $245 million, or $.40 cents per share. That compared with $177 million, or $.29 cents per share, in the same quarter a year ago. Year over year, Viacom delivered a 38% increase in earnings. Now, Iron Man 2 clearly will add to Viacom’s future earnings power.
Viacom CEO Philippe Dauman stated on the company conference call, “It will be a happier time for sellers of advertising this upfront season than it was last year.”
Viacom (VIA-B) is currently trading at $33.11 after the EU juice hit the markets. Technically, Viacom’s stock price is trading between its 50-day moving price average of $33.50 and 200-day moving price average of $28, a potential range bound area for the stock.
Dauman’s advertising sales sentiment plays out positive for Disney, too. Disney reports earnings tomorrow, May 11th. The wall street analyst consensus expectation is calling for a profit of $.46 per share on $8.39 billion revenue. In addition to Iron Man 2, another relevant momentum catalyst for Disney is the exciting NBA Playoffs on ABC and ESPN, both units of Disney.
Disney is currently trading at $35.49 per share. Technically, Disney is trading above its 50-day moving price average of $35 and 200-day moving price average of $29, a very strong sign for the stock.
This Summer’s entertainment lineup is heating up…
Disclosure: No positions in the companies mentioned