Earnings: Disney Inches Past Estimates; Cable Networks Business Holds Up, But Film Drops
This story was written by Joseph Weisenthal.
Disney (NYSE: DIS) announced quarterly revenue of $9.23 billion, up 2 percent form last year, and edging out analyst estimates of $9.14 billion. Net income was up 7 percent to $1.28 billion. Diluted EPS, excluding an accounting adjustment was $.62, just a shade ahead of $.61 consensus estimates. The results almost look like the opposite of Viacom's (NYSE: VIA) report from yesterday. Cable Networks revenue was up 12 percent to $2.59 billion, and total media networks revenue was up 8 percent to $4.12 billion. Recall that Viacom basically showed no growth at its cable networks, depending entirely on Rock Band to lift media revenue. Cable Networks op income was up 14 percent to $1.2 billion, which the company attributed to its ESPN franchise and international growth at the Disney Channel.
Meanwhile, the Studio Entertainment unit saw 19 percent revenue shrinkage to $1.43 billion, due to an inability to repeat the success of Pirates of the Caribbean: At World's End, a hit from last year. Again, it's the opposite of Viacom, for whom film proved to be the hero of the quarter.
Not much commentary on the state of the ad market or the economy in the release. We expect a lot of this, however, on the call.
By Joseph Weisenthal