DISNEY WOWS WALL STREET EARNINGS EXCEED ANALYSTS' EXPECTATIONS.Byline: Jesse Hiestand Staff Writer BURBANK - The Mouse is beginning to roar. The 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. exceeded Wall Street's expectations for third-quarter earnings Thursday on record operating results in its broadcast division and theme parks. The worldwide entertainment conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 30 cents for the quarter ending June 30, 6 cents a share above the consensus of industry analysts polled by First Call/Thomson Corp. That represented a 50 percent increase over the 20-cent earnings per share reported in the same quarter last year. Wall Street welcomed the report, sending Disney's stock up nearly 6 percent - up $2.38 to close in after-hours trading after-hours trading The trading of securities after the exchanges are closed. After-hours trading often refers to trading a listed security in the over-the-counter market after the exchanges have been closed for the day. at $42.50. ``I am pleased to see the momentum continue to build at our company,'' said Michael D. Eisner, Disney's chairman and chief executive officer. ``At the beginning of 2000 we indicated it would be a year of transition.'' Eisner predicted last fall that profits wouldn't rebound at all this year. The third-quarter earnings flow from a 9 percent jump in revenue, to $6 billion, and a 48 percent increase in net income to $633 million, excluding losses at its struggling Internet site GO.com. If the Web operations Web operations is a domain of expertise within IT systems management that involves the deployment, operation, maintenance, tuning, and repair of web-based applications. With the rise of web technologies since mid-1995, specialists have emerged that understand the complexities of , since renamed the Walt Disney Internet Group The Walt Disney Internet Group (WDIG) oversees several websites owned by The Walt Disney Company and its subsidiaries. [1] The division's Disney Online unit operates disney. , are included, earnings per share dropped to 21 cents for the quarter. The turnaround was fueled by strong advertising at its ABC television ABC Television may refer to:
Disney's Media Networks posted record operating results for the quarter, with revenue up 20 percent to $2.3 billion and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. up 36 percent to $662 million. Its Parks & Resorts division also reported record results for the quarter, with revenue up 13 percent to $1.9 billion and operating income up 14 percent to $565 million. The parks benefited from increased guest spending and record theme park 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 in Orlando, Fla. It also reflected higher attendance at Disneyland driven by the 45th anniversary celebration and the strength of the Annual Pass program. Adding a second cruise ship to the fleet, the Disney Wonder, also improved results in the cruise division. The company's struggling film studios and consumer products division continued to post losses. Studio revenue was down for the quarter by 2 percent to $1.2 billion, largely because of decreases in domestic motion picture distribution, which were offset by increases in network television distribution, worldwide home video and stage plays. Consumer products revenue was down 11 percent to $511 million for the quarter, driven by declines in worldwide merchandise licensing and increased advertising and infrastructure costs. ``We've undertaken in recent months a number of efforts to try to improve the picture,'' said Disney spokesman Ken Green. Those changes include cutting expenses, cutting back on motion picture production and shifting strategies in home video and consumer products - moves the company hopes will help sustain the rebound. ``We anticipate a continued strong performance in these areas in the future,'' he said. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion