Why The Walt Disney Company (DIS) Stock Is Gaining In After-Hours Trading On Tuesday

NEW YORK (TheStreet) -- Shares of The Walt Disney Company (DIS) are up 0.90% to $81.76 in after-hours trading on Tuesday after the company reported an increase in net income and revenue for the 2014 second quarter.

Disney said net income increased to $1.9 billion, up from $1.5 billion for the 2013 second quarter.

The company announced diluted earnings per share were up 30% to $1.08 from 83 cents for the year ago quarter.

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Disney reported EPS, excluding certain items affecting comparability, for the quarter was $1.11 from 79 cents reported for the same quarter the previous year.

Revenue for the most recent quarter was $11.6 billion, compared to $10.5 billion from the same period last year.

TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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
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