Disney Posts Strong Quarterly Results Despite Weakness in Film Studio
'Thor' Attraction Coming to Disneyland
The Walt Disney Co. topped fiscal third-quarter earnings expectations by hauling in 77 cents per share, a 15 percent improvement over last year and 4 cents better than analysts had predicted.
Revenue also topped expectations, coming in at $10.7 billion, up 7 percent. Net income was $1.5 billion, up 8 percent.
Chief executive Robert Iger credited the company's Media Networks, especially ESPN, along with Parks and Resorts and Consumer Products for the strong results, though not Studio Entertainment, which was responsible for the bulk of a $34 million impairment charge.
Of Disney's five segments, only Studio Entertainment posted lower revenue this quarter compared with the same quarter last year. Revenue fell 1 percent to $1.62 billion, and operating income at the studio plunged 60 percent to $49 million.
Cars 2 and Thor had tough comparisons with last year's Toy Story 3 an Iron Man 2, but Pirates of the Caribbean: On Stranger Tides offset much of the damage.
Disney shares were rising 2 percent in after-hours trading.
Disney shares, which had been up 9 percent on the year as recently as last month, have taken a nosedive along with the rest of the market. In August alone, the stock has plunged 10 percent. On Tuesday, though, the shares gained 5 percent to $34.70 on a strong market rebound, though the stock remains down 8 percent on the year.