The Walt Disney Company Announces Increased Earnings

The Walt Disney Company's (NYSE: DIS) profit exceeded analyst expectations in the third quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
Investors cheered Disney's latest numbers as the company announced EPS and revenues that topped predictions. The company reported adjusted net income of 78 cents/share versus the 73 cents/share estimate and revenues of $10.68 billion versus the $10.45 billion estimate. Revenue climbed 6.7% from the same period last year.
For the past five quarters, net income has increased 19.4% year over year on average. The biggest gain came in the first quarter quarter, when income climbed 54.3% from the year earlier quarter. The Walt Disney Company's revenue has increased the past three quarters on a year-over-year basis.

Income:
For the year, Disney reported net income of $2.39/share. The company trumped analyst projections of $2.24 by 6.7%. According to the reported number, the company's income rose 10.9% from last year's levels.

Official Comment:
"Our third quarter demonstrates the continued strength of our Media Networks, including ESPN, Parks and Resorts and Consumer Products," said Robert A. Iger, President and CEO of The Walt Disney Company. "In these turbulent times, our company and its array of strong brands are well-positioned to deliver long-term shareholder value."

Industry:
Disney is in the media conglomerate industry. That industry is currently enjoying price/earnings growth of 1.7%. 

What to Do Next:
Now you're all set to decide what to do with those Disney shares until the next earnings announcement. Whether you buy, sell or hold, check back with before the company's next earnings release for a full preview.

• To see up-to-date news on The Walt Disney Company, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here