Tags: disney | movie | theme park | earn

Disney Profit Rises 21% to Beat Street Estimates

Tuesday, 08 May 2012 04:47 PM

Walt Disney Co., the world’s largest entertainment company, said second-quarter earnings rose 21 percent, beating analysts’ estimates as theme parks countered the sci-fi film “John Carter” that bombed in theaters.

Net income increased to $1.14 billion, or 63 cents a share, from $942 million, or 49 cents, a year ago, Burbank, California-based Disney said Tuesday in a statement. Excluding items, profit of 58 cents beat the 55-cent average of 28 estimates compiled by Bloomberg.

Profit in the theme-park division jumped 53 percent. Investors are already looking past the $200 million loss on “John Carter” for clues to the impact this quarter and beyond from the record-breaking opening of “Marvel’s The Avengers,” the Disney adventure film that took in $207.4 million in its U.S. theatrical debut last weekend.

“Having something like ‘The Avengers’ though really goes a long way,” Rich Greenfield, an analyst with BTIG Research, said in an interview before results were announced. “These are things that you can leverage through the Disney channels. These are things you can leverage through the parks. These are things you can leverage on the broadcast network.”

Sales rose 6.1 percent to $9.63 billion in the period ended March 31, beating analysts’ projections of $9.56 billion.

Disney rose 1.1 percent to $44.30 at the close in New York. The stock has gained 18 percent this year, ranking sixth in the 16-stock S&P 500 Media Index. The all-time closing high of $44.38 was set on March 26.

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Tuesday, 08 May 2012 04:47 PM
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