Disney Reports Better-Than-Expected Earnings

Disney (NYSE: DIS) reported better-than-expected quarterly profit and revenue on Tuesday, fueled by a 40 percent jump in revenue at its movie studio from hits including “The Jungle Book” and “Captain America: Civil War.” The company posted third-quarter earnings of $1.62 per share on $14.28 billion in revenue. Analysts expected Disney to post earnings of $1.61 per share on $14.15 billion in revenue, according to a Thomson Reuters consensus estimate. The stock was last down 1 percent in extended trading, according to Reuters.

Operating income for Disney’s studio segment came in at $766 million, higher than analyst expectations for $720.7 million, according to FactSet. Overall, the company said operating income for the unit benefited from “strong performance” of its films including “Captain America: Civil War” and “Finding Dory.”

“Evidence that our asset mix is strong, as is our ability to execute in ways that enhance the Disney brand and create value for our shareholders while we invest for future growth,” said Disney CEO Bob Iger.

At the movie studio, revenue increased 39.6 percent to $2.85 billion, helped by a string of successful hit movies. Operating income at the studio rose 62 percent to $766 million. Revenue at its theme park and resorts business was up 6 percent to $4.38 billion. The net income attributable to the company rose to $2.6 billion, or $1.59 per share, in the third quarter, from $2.48 billion, or $1.45 per share, a year earlier.

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