DISNEY, COMCAST EARNINGS CLIMB.

Byline: Greg Hernandez Staff Writer

BURBANK - The Walt Disney Co. topped Wall Street expectations with first-quarter earnings rushed out early Wednesday after the surprising bid by Comcast Corp.

Instead of releasing its results after the close of market as was planned, Disney moved up the announcement to the early morning hours to ensure that they were included in widespread coverage of the offer.

If Disney wanted to appear strong, it picked the perfect quarter: Net income rose dramatically to $688 million, or 33 cents per share, from $36 million, or 2 cents per share, a year ago.

Philadelphia-based Comcast Corp. also announced Wednesday it swung to a profit in the fourth quarter and cited continued demand for digital cable and high-speed Internet service in predicting continued growth in 2004.

Disney Chairman and Chief Executive Officer Michael D. Eisner, who did not mention Comcast by name, told analysts at a two-day conference at Walt Disney World Resort in Florida on Wednesday that the first-quarter results are ``tremendous.''

``Our recent performance provides strong evidence that we are on the right course and beginning to reap benefits of the steps we have been taking and are taking over the last several years to position the company for renewed growth,'' Eisner said.

The first-quarter strength of the company's studio division resulted in Disney topping Wall Street's consensus by 10 cents a share.

``They really blew away our estimates,'' said media analyst David Joyce of Miami-based Guzman and Co.

First-quarter studio revenues were up by 57 percent to $3 billion during the quarter, led by the home video releases of summer box office blockbusters ``Finding Nemo'' and ``Pirates of the Caribbean.'' This propelled overall company revenue to $8.55 billion compared with $7.7 billion a year ago.

``It's primarily due to the DVD sales, so it's not going to be duplicated in the foreseeable future because the release schedule has been a bit weak since the summer,'' Joyce said.

During the quarter, Disney's home entertainment division set an all-time record, selling approximately 140 million DVD and VHS units. Other big titles included ``Freaky Friday,'' ``Santa Clause 2'' and the release of a special edition of ``The Lion King.''

But feature film releases since then have included several misfires such as the thriller ``Cold Creek Manor'' and the solid, but not blockbuster, success of the animated ``Brother Bear.''

Other boosts came from parks and resorts, which enjoyed a revenue boost of 5 percent to $1.6 billion as theme park attendance and hotel occupancy rates were up at Walt Disney World Resort in Orlando, Fla.

``It appears that we are pulling out of the shadow of the economic downturn of the last two years and the post-9-11 decline in tourism,'' Eisner said. ``Disney has prepared for the turnaround by building a stronger asset base than ever throughout our company.''

Broadcasting saw revenues rise by 6 percent to $3.1 billion. Positives were higher affiliate revenue, lower NFL programming costs and higher upfront advertising rates for ABC.

In Disney's consumer products division, revenues rose 7 percent to $840 million during the quarter, driven by cost savings and increased sales in stores in North America.

Eisner used the occasion to say that the strong results increase confidence that the company will deliver earnings growth of more than 30 percent this fiscal year.

``Given the strength of our brands and other assets and the strategies we have in place, as we look out several years beyond 2004, we are targeting double-digit compound growth in our earnings through at least 2007,'' he stated.

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com

CAPTION(S):

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Box:

MEDIA SECTOR GAINS

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TWO COMPANIES POST GREAT GAINS

Associated Press