This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Disney Squeaks By Estimates

Updated from 4:36 p.m. EST

Disney (DIS - Get Report) says it has yet to feel any ill effects from the U.S. housing downturn on its parks business, which is closely watched as a barometer of consumer confidence.

"So far, we're not seeing any effects from everything that's going on in the economy," said Disney CEO Bob Iger on a conference call with analysts that followed the company's fourth-quarter earnings release Thursday. "People are not giving up their family vacations, particularly to our Disney destinations."

The Burbank, Calif.-based entertainment giant reported a 12% jump in profits for the September quarter, beating expectations on Wall Street. Strength in Disney's media networks division drove the results, and the weak dollar benefited its domestic theme parks as vacationers opted to avoid high prices abroad.

Analysts are watching park attendance closely at Disney, given widespread concerns about the U.S. economy that are weighing on the stock market amid an epic housing downturn.

"We've had some decent growth in international visitation [at the theme parks division]," said Iger. "By and large, our tourists are probably staying closer to home than they would have been if the dollar was stronger in comparison to foreign currencies."

Disney reported fourth-quarter net income of $877 million, or 44 cents a share, up from $782 million, or 36 cents a share, a year earlier.

Excluding one-time items, Disney earned 42 cents a share for the quarter, beating Wall Street's expectations by a penny, according to the average estimate reported by Thomson First Call.

On its top line, Disney logged revenue of $8.93 billion, up 3.2% from last year's $8.65 billion. Analysts, on average, had expected revenue of $8.97 billion.

Fourth-quarter revenue at Disney's media networks division rose 14% to $4 billion, while operating income at the segment jumped 25% to $1.1 billion. The division includes its broadcast network, ABC, and its cable networks, including ESPN.

Currently, Disney's TV properties are grappling with an industry-wide strike called by movie and TV writers represented by the Writers Guild of America. Its film studios are affected as well, but the strike has more immediate consequences for TV shows, like ABC's Jimmy Kimmel Live and Desperate Housewives.

Parks revenue rose 10% to $2.8 billion, while the unit's income was up 9% to $430 million.

Disney's film studios posted a 24% decline in revenue to $1.5 billion and a 21% drop in operating income to $170 million, reflecting in part the strength of Pirates of the Caribbean: Dead Man's Chest in the prior-year period.

Consumer products revenue rose 5% to $590 million and operating income was up 10% to $153 million.

"We've delivered another year of outstanding financial results, powered by across-the-board creative strength," said Disney in a press release. "We believe our strong brands, combined with high-quality creative content and our ability to promote and distribute that content across multiple businesses and platforms, gives us a unique ability to continue delivering growth and value to our shareholders."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DIS $113.49 -1.40%
NWS $14.46 0.63%
TWX $70.04 0.37%
AAPL $118.40 0.50%
FB $104.25 -1.10%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs