Pixar 4th-Qtr. Profit Rises Ninefold

Pixar Animation Studios said its fourth-quarter profit rose ninefold, beating analysts’ forecasts, on overseas video sales of “A Bug’s Life,” the computer-animated film it released with Walt Disney Co.

Net income rose to $9.6 million, or 19 cents a share, for the quarter ended Jan. 1 from $1.1 million, or 2 cents, a year earlier. That beats the average estimate of 14 cents a share from analysts polled by First Call/Thomson Financial. Revenue rose to $24.9 million from about $3.1 million.

The Richmond, Calif.-based film studio has been on a hot streak at the box office. It released three blockbusters under Chairman Steve Jobs, who co-founded Apple Computer Inc. Although “A Bug’s Life” was released more than a year ago, it continues to earn money for Pixar from sales of video and merchandise.

“This is the first year which really demonstrates Pixar’s earnings potential from our new Disney partnership,” Jobs said.

Pixar also said it expects profit this year of at least $1.10 a share, compared with the $1.29 average estimate of analysts. It plans to release the video of “Toy Story 2,” its latest hit, this year and expects to eventually sell about 35 million video units, said Ann Mather, the company’s chief financial officer.

“A Bug’s Life” was the first picture released under a five-picture co-production venture between Pixar and Disney.