Disney Beats Views With 40% 3Q Profit Jump On Hit Movies
DOW JONES NEWSWIRES
Walt Disney Co.'s (DIS: 34.14 ,-0.93 ,-2.65%) fiscal third-quarter earnings jumped 40% because of deferred revenue at ESPN and hit movies like "Toy Story 3," as the media giant and theme-park operator's results beat analysts' views.
Shares climbed 1.5% after-hours to $35.75. The stock had risen 9.4% this year through the close, better than the broader market.
In the most recent period, the film and TV production studio swung to a profit as revenue jumped 30% on the strong response to "Toy Story 3," as well as "Alice in Wonderland" and "Iron Man 2."
The division including television operations, Disney's largest, posted a 19% rise in revenue and 43% jump in profit, driven by deferred revenue at ESPN and, to a lesser extent, the Disney Channel. Broadcasting, which includes ABC, posted modest 4% and 2% increases in revenue and earnings, respectively.
Disney's theme parks struggled in the most recent period. The business is largely at the mercy of consumer-spending trends, which were essentially flat in the three months through June, according to the Commerce Department. Many view the parks' performance as an economic bellwether.
