DISNEY A HAPPIER PLACE AFTER STRONG 4TH QUARTER.Byline: Dave McNary Daily News Staff Writer Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co., continuing to impress Wall Street, on Tuesday reported an 18 percent gain in quarterly profits based on solid results from its Florida theme parks and films. ``This was a pretty strong report,'' said Linda Bannister, an analyst with Edward Jones Edward, Eddie, or Ed Jones is the name of: Edward Jones:
The results, which matched analysts' estimates, gave Burbank-based Disney record earnings of $1.97 billion, or $2.75 a share, for its fiscal year ended Sept. 30, up 25 percent over fiscal 1996 excluding one-time events. The report underscores that the entertainment giant carries plenty of momentum as it spends $1 billion a year on expansion amid a strong economy. Disney will launch two major ventures next year - the Animal Kingdom park near Disney World and a cruise ship line - and has started the Club Disney Club Disney was a failed regional children's play center concept operated by Disney Regional Entertainment. Club Disney was billed as "imagination-powered playsite". The first Club Disney opened in Thousand Oaks, California. play park and ESPN ESPN Entertainment and Sports Programming Network Store chains in California. It will also open its first ESPN Grill restaurant and DisneyQuest interactive park next year and is planning a $3 billion expansion of Disneyland. Analysts believe the coming live-action films ``Flubber'' and ``Armageddon'' and the animated ``Mulan'' and ``A Bug's Life'' will be blockbusters. Investor optimism over the earnings report had pushed Disney stock up nearly $6 during the three sessions before Tuesday. It hit $90.31 before closing up 25 cents at $89.25 for its second consecutive highest close ever. The issue, a component of the Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , is now trading at 28 percent above its last trade of 1996 at $69.75. The stock also received a buy recommendation from Alan Gould Alan Gould (born 22 March 1949) is a contemporary Australian novelist and poet. Born in London Alan Gould's family lived in Northern Ireland, Germany and Singapore before arriving in Australia in 1966. at CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company Oppenheimer with a 12-month target price of $100 a share. Jill Krutick of Smith Barney reiterated her buy rating with a 12- to 18-month target of $110. ``We think the stock should rise as the opening of the Animal Kingdom approaches, Disney outshines its animation competition and new-product initiatives yield solid results,'' Krutick said. She forecasts annual profit growth of 17 percent over the next five years, topping Disney Chairman Michael Eisner's 15 percent goal. Fourth fiscal quarter profits were $411 million, or 60 cents a share, compared with $349 million, or 51 cents, in the same period last year. Revenues rose 4.7 percent to $5.52 billion, while costs as a percentage of sales declined to 82.5 percent of sales from 83.8 percent. Creative content - film, TV programming and merchandise - posted a 20 percent gain in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. to $448 million, boosted by ``Con Air,'' ``Hercules'' and ``George of the Jungle'' and videos of ``Sleeping Beauty'' and ``Pooh's Great Adventure.'' Disney also said results were boosted by merchandise tied to Winnie the Pooh and ``101 Dalmatians'' and by its Disney Store chain, now at 649 outlets. Theme parks and resorts posted a 12 percent gain in operating profits to $272 million from higher attendance at Walt Disney World Noun 1. Walt Disney World - a large amusement park established in 1971 to the southwest of Orlando Orlando - a city in central Florida; site of Walt Disney World , which included a 25th anniversary celebration and the addition of the BoardWalk Resort. Broadcasting division operating profits edged up 0.8 percent to $241 million on strong results from ESPN and the Disney Channel overcoming a loss from ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. , which has been in third place in the ratings for a year. Krutick said the network appears to be stabilizing, which she called ``a major positive.'' CAPTION(S): Chart CHART: (color) THE WORLD OF DISNEY Shares of Burbank-based Walt Disney Co. have risen 14.8 percent since the Dow Jones industrial average lost 554 points Oct. 27. Daily News |
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