Walt Disney’s (NYSE: DIS) share price fell over 4% during Monday’s session, adding to its year-to-date losses after the sequel to Avatar took in less than expected.
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There were high expectations for the film, but it came in below the $175 million industry analysts had predicted, at $134 million. The number was also just below Disney’s own forecast of between $135 million and $150 million.
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Disney shares are now down almost 45% in 2022, declining 20% in the last three months.
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The movie was also said to have underperformed in China, earning $57.1 million in the country due to concerns over the coronavirus. Disney said the result was disappointing, especially after the success of the first “Avatar” movie in the country.
Tony Chambers, Disney’s global head of theatrical distribution, said the problem is that “nobody wants to go to the cinema, because they’ve been told that Covid is extremely dangerous.”
“Although cinemas are open, the appetite for going to them isn’t really there,” he added.
Despite most pointing to a disappointing result for the move, Founder and Editor of BoxOfficeGuru, Gitesh Pandya, tweeted on Monday that Avatar’s “opening wknd was bigger than estimated.”
“Despite #WorldCupFinal, SUN came in $7M higher from intl mkts. Domestic on target with estimates,” he added.
Pandya listed the final opening weekend box office for AvatarTheWayOfWater as follows:
$134 million – domestic
$307.6 million – international
$441.6 million – global
“Will smash $500M tomorrow!” he stated.
According to the analyst rating website TipRanks, out of 21 analysts, 17 have a Buy rating on Disney, with four at Hold. The average price target is $120.76 per share, representing a potential 40.78% upside in the stock.
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