Disney's Profit Climbs - TheStreet

Disney's Profit Climbs

ESPN drives another quarter of growth.
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(DIS) - Get Report

topped Wall Street's estimates with its third-quarter earnings report, moving shares higher in the after-market session Wednesday.

The Burbank, Calif., media giant posted third-quarter net income of $1.28 billion, or 66 cents a share, rising from a profit of $1.18 billion, or 57 cents a share, in the year-ago quarter.

Excluding one-time gains related to the acquisition of the Disney Stores in North America and the sale of movies.com, as well the favorable resolution of certain prior-year income tax issues, Disney said it had an adjusted profit of 62 cents a share. On average, analysts expected Disney to post an adjusted profit of 61 cents a share, according to Thomson Reuters.

Sales for the quarter rose 2% from a year ago to $9.23 billion, exceeding Wall Street's forecast of $9.14 billion.

Shares of Disney finished Wednesday's session higher by 75 cents, or 2.4%, at $31.67, and the stock was up another 1% in late trading to $32.

"We've had another solid quarter at The Walt Disney Company, further illustrating our creative momentum, the competitive strength of our brands and our ability to cohesively manage a great collection of assets to maximize shareholder value," said President and CEO Robert Iger in a statement.

By business segment, a 19% drop in studio entertainment revenue was offset by 12% growth in its cable networks -- due largely to ESPN -- and a 20% rise in consumer products, driven primarily by the acquisition of the Disney Stores in North America.

Disney also said parks and resorts revenues increased 5% in the quarter, due primarily to an increase at Disneyland Resort Paris driven by favorable currency translation and higher guest spending and attendance.

Among other media companies,


(CBS) - Get Report

fell 1.6% and

Time Warner


slipped 0.8%, while

News Corp.

(NWS) - Get Report

added 1.5%.