Disney posts surprise jump in fourth-quarter profit
Filed under: Company News, Earnings, Walt Disney
Walt Disney Co. (DIS) on Thursday posted a surprise 18% increase in fourth-quarter earnings as its movie studio recovered from a lengthy downturn. The better-than-expected results, which come amid an executive overhaul, are a sign the company is beginning to emerge from an advertising market hit hard by the recession, though ad revenues were still down.Net income rose to $895 million, or 47 cents per share, as revenue at its cable, broadcast and movie studio units rose, more than offsetting declines at its parks and consumer products units. Overall revenue rose 4% to $9.89 billion. Excluding one-time items, earnings per share came to 46 cents, handily beating analyst estimates by a nickel.
"Although last year was a difficult one due in part to the weak global economy, I'm pleased with the way our businesses have responded to the downturn," Chief Executive Robert Iger said in a statement. Earlier Thursday, Disney said it would switch up the roles of a couple of its high achievers at the end of the year, after recasting executives at the struggling studio.
Chief Financial Officer Tom Staggs, 49, will become chairman of Walt Disney Parks and Resorts. Jay Rasulo, 53, the current parks chairman, will assume the part of chief financial officer.
Disney recently overhauled executives and operations at the studio, which had seen five straight quarters of declining revenue, and after the fourth-quarter uptick still posted a 16% decline in revenue for the full year.
Shares jumped $1.08, or 3.7 percent, to $30.14 in after-hours trading Thursday following the earnings release, after closing down 24 cents at $29.05.
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Reader Comments (Page 1 of 1)
11-12-2009 @ 7:54PM
Donna said...
How can Disney not have a good quarter? They recently raised their ticket prices by $4 making a 1 day 1 park adult ticket $79. plus tax. On top of that if you drive to the parks here in Florida they also charge a whopping $14. to park your car....So come on and tell me how they can't come out on the profit side?
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11-13-2009 @ 8:10AM
DAVO said...
WHAT WAS THE ONE TIME ITEM . OR WHAT DID THEY SELL OFF OR PAD TO GET TO 4 % . I SEE THAT THE PARKS AND THE CONSUMER PRODUCTS ARE STILL DOWN BUT THEY DIDN'T SAY HOW MUCH.
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