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Disney (NYSE:DIS)Profit Tops Estimates, Films Drive Gains

Posted by: : Paul EbelingPosted on: August 6, 2014 Disney (NYSE:DIS)Profit Tops Estimates, Films Drive Gains

Disney (NYSE:DIS)Profit Tops Estimates, Films Drive Gains

Walt Disney Co. (NYSE:DIS), is becoming as known for Marvel Superheroes as for Mickey Mouse, posted profits that beat analysts’ estimates, driven by box-office hits.

Net income rose to $2.25-B, or 1.28/share, from $1.85-B, or 1.01, a year earlier, Disney said Tuesday in a statement. That beat the 1.16/share average of 28 analysts’ estimates.

Disney is the world’s largest entertainment company, and it had two big films for the Quarter that ended 30 June; Marvel’s “Captain America: The Winter Soldier” and “Maleficent,” according to Box Office Mojo. “Guardians of the Galaxy,” also from Marvel, opened last weekend with $94.3-M in domestic cinemas, the best ever for an August release.

Revenue grew 7.7% to $12.5-B, surpassing the $12.1-B estimate, Disney said.

Operating income at the film studio more than 2X’d to $411-M, the biggest gain among the company’s 5 divisions. “Frozen,” the hit Y 2013 movie, continued to deliver profit in home entertainment and international cinemas.

Disney’s consumer products unit, which benefits from Marvel-themed products, posted a 25% rise in profit to $273-M, revenue grew 16%.

The acquisitions of Marvel in Y 2009 and Lucasfilm in Y 2012 has brought to Disney new material to attract teenage boys to its films, as well as characters for its toys, TV networks and theme parks. The film studio is well positioned for at least the next 5 yrs.

Disney gets the bulk of its profit from its TV division.

Operating income at the unit, which includes ESPN, ABC and the Disney Channel, was little changed at $2.3-B, as sports programming costs increased. While ABC earnings increased, profit at the much larger cable operation fell 7%because of higher costs at ESPN, the sale of a UK unit at ESPN and the shift in the timing of some revenue.

Profit at Disney’s parks increased 23% to $848-M, with attendance and guest spending up at its domestic resorts. The company raised daily admission prices at its Magic Kingdom park in Orlando, Florida, twice in the past year, to $99 from $89 and benefited from the later Easter Holiday, which pulled business into the Quarter. Disney also is in the 2nd year of a rollout of electronic wristbands that make purchases easier in the parks.

The interactive unit, which makes video games, reported a profit of $29-M, compared with a year-ago loss, driven by sales of the company’s Infinity gaming system.

Disney stock was little changed in extended trading. Before the results, the shares fell 0.6% to 86.75 at the close in New York. They have risen 14% YTD.

HeffX-LTN Analysis for DIS:  Overall Short Intermediate Long
Bullish (0.27) Neutral (0.17) Bullish (0.40) Bullish (0.25)

Stay tuned…


Paul Ebeling


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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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