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 Profits Beat Forecasts on Growth at Amusement Parks, Networks

NEW YORK ( TheStreet) -- The Walt Disney Co. (DIS - Get Report)said sales and profits that beat analyst forecasts as the world's largest entertainment company posted growth at its television networks, film studios and amusement parks.

The Burbank, Calif.-based owner of ESPN and the ABC network, said sales for the three months ended March 31 totaled $10.55 billion, beating a $10.48 billion estimate, according to the average of 25 analysts surveyed by Bloomberg.

Revenue at Disney's amusement parks and resorts grew 14% to $3.3 billion, bolstered by its Cars Land attraction, an outgrowth of its Pixar movies. Operating profit surged 73% to $383 million.

"It was a great quarter for the parks, it really was," Chief Executive Robert Iger said in a conference call with investors. "In an economy that is seeing slight improvement, this bodes very well for our future."

Operating income at Disney for its fiscal second-quarter jumped 29% to $2.5 billion as earnings per share for the quarter adjusted for one-time items was 79 cents, compared to a forecast of 77 cents per share in a Bloomberg survey.

Disney, which has gained 51% in the past 12 months, said operating income at its cable networks, which includes ESPN, rose $224 million to $1.7 billion as affiliate revenue increased 10%. Sales at its media networks, which includes ABC, increase 6% to $5 billion.

"There's more certainty as it pertains to ESPN than just about any of our other businesses, which is a good thing," Iger added. "ESPN is in great shape, and even better as new distribution deals kick in. We think ESPN's future in terms of its growth trajectory is quite good."

Shares were falling 0.7% to $65.62 in after-market trading after closing Tuesday at $66.07.

Chief Executive Robert Iger jumped into the fracas caused by Aereo Inc., the New York-based company that has won two court decisions to defend its business of retransmitting over-the-air broadcast television for their Internet-based pay-subscription service. Aereo is currently only available in the New York metro area.

Aereo is "trying to steal" our television shows and properties, Iger told CNBC, adding that the service will ultimately be ruled to be illegal.

Earlier on Tuesday, Disney said it had reached a multi-year agreement with Electronic Arts Inc. (EA), the second-largest video-game publisher, to produce games based on the Star Wars story and its characters.

Over the weekend, Disney's Iron Man 3 generated $175 million in U.S. sales, the second-highest debut ever to only The Avengers. Worldwide, Iron Man has already brought in $680 million.

Written by Leon Lazaroff in New York

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
VIAB $41.31 -0.29%
DIS $104.97 0.04%
TWX $74.20 -1.90%
AAPL $93.03 -0.23%
FB $117.74 -0.06%


Chart of I:DJI
DOW 17,667.39 +6.68 0.04%
S&P 500 2,049.06 -1.57 -0.08%
NASDAQ 4,707.9250 -9.1690 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs