Disney Reports Mixed Third QuarterTuesday, August 7, 2012
Walt Disney Co. late Tuesday reported 24 percent higher quarterly net income that beat Wall Street estimates. But shares fell slightly in after-hours trading on lower-than-expected revenue.
After the markets closed, the Burbank entertainment giant reported fiscal third-quarter net income of $1.8 billion ($1.01 a share), compared with $1.5 billion (77 cents) in the same period a year earlier. Revenue rose 4 percent to nearly $11.1 billion. Analysts surveyed by Thomson Reuters on average expected earnings of 93 cents a share on revenue of $11.3 billion.
Although "The Avengers," based on the Marvel superhero franchise, helped boost profits from the company’s struggling studio unit, studio revenue was nearly unchanged from a year ago at $1.6 billion. That was less than the Wall Street consensus of more than $1.7 billion.
Revenue from the broadcast and pay TV unit, which includes ABC and ESPN, grew 3 percent to $5.1 billion. Revenue from the company’s parks and resorts business was up 9 percent to $3.4 billion. Consumer products revenue rose 8 percent to $742 million.
Shares earlier closed up 16 cents, or less than 1 percent, to $49.81 on the New York Stock Exchange, but fell 2 percent in after-hours trading.