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Walt Disney (DIS) Gains After Stronger-Than-Expected Q2

 May 08, 2012 05:00 PM

(By Balaseshan) Walt Disney Co. (NYSE:DIS), a worldwide entertainment company, reported a 21% jump in second quarter earnings helped by strong growth across four segments, despite lower theatrical results of John Carter film. Adjusted earnings and revenue came in above Street's expectations, sending its shares up 1.13% in aftermarket.

Earnings for the second quarter were $1.14 billion or $0.63 per share, up from $942 million or $0.49 per share last year. Excluding a gain related to an acquisition and restructuring and impairment charges, adjusted earnings per share rose 18% to $0.58.

Revenue increased to $9.63 billion from $9.08 billion. Analysts had expected a profit of $0.55 per share on revenue of $9.56 billion.

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Revenue from media networks increased 9% to $4.69 billion, due to growth at ESPN and, to a lesser extent, at the domestic Disney Channels. Increased prime time rates at the ABC Television Network also contributed to the rise in media networks revenue.

Parks and resorts revenue grew 10% to $2.90 billion, driven by increases at its domestic parks and resorts, Tokyo Disney Resort and Hong Kong Disneyland Resort, partially offset by a decrease at Disneyland Paris.

Studio entertainment revenue fell 12% to $1.18 billion, primarily due to lower worldwide theatrical results reflecting the performance of John Carter in the current quarter along with the related film cost write-down. Other titles in the current quarter include The Muppets and Beauty and the Beast 3D.

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Consumer products revenue rose 8% to $679 million, driven by the performance of Minnie, Mickey, The Avengers and Princess merchandise as well as an increase in Merchandise Licensing.

Interactive media revenue increased 13% to $179 million, driven by an increase at its games business reflecting improved results from social and console games.

Segment operating income for the quarter increased to $1.95 billion from $1.77 billion, due to  higher income from all of its segments excluding studio entertainment.

Chief Executive Robert Iger said the company is incredibly optimistic about its future, given the strength of core brands, Disney, Pixar, Marvel, ESPN, and ABC, and its extraordinary ability to grow franchises across businesses, such as The Avengers, which shattered domestic box office records with a $207.1 million opening weekend for a global performance of more than $702 million to date.

DIS closed Tuesday's regular session up 1.10% at $44.30. The stock has been trading between $28.19 and $44.50 for the past 52 weeks.



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