(By Salman - iStockAnalyst Writer)Walt Disney Co. (NYSE:
DIS) is scheduled to report fiscal fourth quarter earnings after the market close on Thursday, November 12, 2009. Analysts on average expect the company to report earnings of 40 cents per share on revenue of $9.26 billion. In the year ago period, the company reported earnings of 43 cents per share on revenue of $9.45 billion.
The Walt Disney Company operates as a diversified entertainment company worldwide. The company's Media Networks segment comprises domestic broadcast television network, television production and distribution operations, domestic television stations, cable/satellite networks, domestic broadcast radio networks and stations, and the Internet and mobile operations.
The company has suffered from declining advertising and theme park revenue amidst a global slowdown in demand. Late in July, the Burbank, California-based company reported that fiscal third quarter net income declined 26% to $954 million or $0.51 per share, from $1.3 billion or $0.66 per share for the year-ago quarter .Revenue for the third quarter slipped 7% to $8.60 billion from $9.24 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of $0.51 cents per share on revenue of $8.83 billion.
On a segmental basis, third quarter revenue from the company's media network segment declined 2% year-over year to $3.96 billion, while revenue from parks and resorts dropped 9% to $2.8 billion. Third quarter revenue from the company's studio entertainment division slumped 12% to $1.3 billion.
Late in August, Walt Disney agreed to acquire Marvel Entertainment, Inc. (NYSE:
MVL) in a cash and stock transaction valued at about $4 billion. The purchase gives Disney the rights to 5000 Marvel comic-book characters, including Spider Man, X-Men, and Iron Man, and their associated royalty and licensing revenues from games, movies, clothing, toys, and theme park rides. The deal is expected to close by year-end.
The world's biggest media company in September reached a deal to acquire video game manufacturer Wideload Games Inc., the creator of the Halo science-fiction franchise for Microsoft's (NASDAQ:
MSFT) Xbox.
Early in November, Walt Disney announced that it has received official approval from China to set up the company's theme park in Shanghai. About 1000 acres will reportedly be used for the project, which is expected to have hotels and shopping areas. Disney already has a theme park in Hong Kong.
Meanwhile, Walt Disney's "A Christmas Carol," a 3-D adaptation of the Charles Dickens holiday tale saw a muted opening domestically and internationally. In a research note to investors, Deutsche Bank analyst Doug Mitchelson estimated Disney will take a $50 million write-down based on the film's opening weekend and $200 million budget. Mitchelson slashed his earnings forecast for the company's fiscal fourth quarter to 2 cents per share from 40 cents per share saying that a disappointing $31 million in opening weekend ticket sales will lead to smaller quarterly profits.
In terms of stock performance, Disney shares have gained 21% since the beginning of the year. Shares of the company rose 19 cents or 0.67% to $28.75 in midday trade on Monday.
Disclosure: Author doesn't own any of the stocks mentioned here.
