Walt Disney Beats FQ3 Views; Net Gains 22% On 8% Revenue Growth

Walt Disney Co.

fiscal third-quarter top-and bottom-line results beat Wall Street estimates although operating earnings at its largest segment were flat. Net earnings climbed 22 percent on an 8 percent revenue gain. The company's largest segment, media networks, posted flat operating income of $2.3 billion on revenue growth of 3 percent to $5.5 billion. Wthin the media networks segment, cable networks' operating income fell seven percent to $1.9 billion due to a decrease at ESPN, partially offset by an increase at ABC Family. Gains at domestic operations pushed the parks and resorts' segment revenue up 8 percent to $4 billion and segment operating income jumped 23 percent to $848 million. Studio Entertainment revenue grew 14 percent to $1.8 billion and segment operating income increased to $411 million on gains increases in worldwide home entertainment and international theatrical distribution. Growth in licensing drove a 16 percent revenue gain to $902 million in the consumer products segment where income increased 25 percent to $273 million. Game sales growth drove a 45 percent increase in interactive revenue while operating results swung to a gain of $29 million from a loss of $58 million in the year-earlier period. Disney posted total earnings of $2.25 billion, or $1.28 a share, compared with $1.85 billion, or $1.01 a share, in the year-earlier period. Revenue grew to $12.45 billion, from $11.58 billion. Wall Street expected earnings of $1.17 on revenue of $12.16 billion. In extended trading, Disney was nearly unchanged at $86.69 a share.