Disney Ahead on Earnings

Walt Disney Co. beat Wall Street estimates on earnings but fell short on revenue in the fiscal second quarter. The Burbank entertainment and media giant reported on Tuesday net income of $2.4 billion ($1.50 a share) on revenue of $13.3. billion in the quarter ended April 1. That compares to net income of $2.1 billion ($1.30 a share) in the same period a year earlier. Analysts on average expected earnings of $1.41 on revenue of $13.5 billion, according to Thomson Financial Network. Out of Disney’s four business units, parks and resorts posted the highest revenue increase of 9 percent, going to $4.3 billion from $3.9 billion in the same period a year earlier. Studio entertainment revenue decreased in the first quarter by 1 percent to $2 billion, while consumer products & interactive media dropped by 11 percent. Media networks revenue increased 3 percent to $5.9 billion. Disney Chief Executive Robert Iger said he was pleased with the quarterly results and remained confident in the company’s ability to deliver long-term shareholder value. “Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth,” Iger said in a prepared statement. Shares closed up 64 cents, or less than a percent, to $112.06 on the New York Stock Exchange.