NEW YORK (TheStreet) -- TheStreet's Jim Cramer says he believes in Disney (DIS - Get Report) CEO Bob Iger because he decided to create brands. Wall Street wants hit after hit when it comes to franchises, and Disney has Marvel, the upcoming Star Wars movies and Pixar under its umbrella.
The unexpected boost was Frozen, which Cramer says is "the biggest thing that's happened in a long time" for anyone with children. Iger now has a new franchise on his hands with the sixth-highest grossing movie of all-time, so Cramer expects to hear about a Frozen 2 for release in 2017, which would give a road map for Disney's future.
Cramer points out ESPN is still performing well and Disney has increased resort spending in Shanghai, China. He also expects share buyback to be very aggressive and knows Iger would be willing to pay up to $80 a share without a problem. He is also not worried about attendance at theme parks.
- DIS's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DISNEY (WALT) CO has improved earnings per share by 33.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $3.38 versus $3.12 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $3.38).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Media industry average. The net income increased by 33.1% when compared to the same quarter one year prior, rising from $1,382.00 million to $1,840.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $1,212.00 million or 5.94% when compared to the same quarter last year. In addition, DISNEY (WALT) CO has also modestly surpassed the industry average cash flow growth rate of 3.44%.
- You can view the full analysis from the report here: DIS Ratings Report