Disney Profit Lights Up
Updated from 4:48 p.m. EDT
Walt Disney (DIS) reported a 27% jump in second-quarter profits, beating estimates on Wall Street, as the media giant saw double-digit growth in operating earnings across of all its business units.
Still, the company's revenue fell slightly short of expectations, sending shares lower in after-hours trading.
For the quarter ended March 31, Disney earned $931 million, or 44 cents a share, up from the $733 million, or 37 cents a share, a year earlier. Analysts had an average estimate for expected earnings of 38 cents a share, according to Thomson Financial.On its top line, Disney reported a 1% uptick in revenue to $8.07 billion, compared with analysts' expectation of $8.12 billion. The company's biggest division by revenue, media networks, recorded a 21% jump in operating income to $1.18 billion, though revenue was virtually flat at $3.56 billion. The division includes the broadcast network ABC and the cable sports network ESPN. While ABC logged a 7% decline in revenue amid lower ratings, the broadcaster enjoyed a 33% increase in operating income due to syndication sales of hit shows like Desperate Housewives, Lost, and Grey's Anatomy and its new series Ugly Betty and Brothers and Sisters. The cable networks, led by ESPN, had a 19% gain in operating income on a 7% increase in revenue. Elsewhere, Disney's film business racked up a 60% surge in operating income to $235 million. The bottom line got a boost from improved domestic results from new film releases, like Wild Hogs and Bridge to Terabithia, coupled with lower distribution expenses due to timing of those releases.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV