Disney Flies Past Expectations With Q2 Earnings On Continued Success Of 'Frozen'
Shares of the Walt Disney Company are taking the advice of one of its smash hit songs and letting go: that is, letting go of losses from Tuesday’s regular trading session. The stock is rallying in after-hours trading Tuesday afternoon after a surprisingly strong second quarter earnings report revealed profit and revenue that were well above the Street’s expectations.
Disney reported $11.6 billion in second quarter revenue, beating the analyst consensus of $11.2 billion and marking a 10% increase over the $10.6 billion reported as revenue for the prior-year period. Net income came in at $1.9 billion, up 27% over the same time in 2013, resulting in earnings of $1.08 per share. Excluding special items — like a $143 million foreign exchange loss in Venezuela as well as miscellaneous restructuring charges — Disney’s net income came in at $2.06 billion, or $1.11 per share. This easily beats the Street estimate, which was calling for earnings of 96 cents per share.
Disney’s parks and resorts revenue increased 8% to $3.6 billion thanks to increased guest spending at Walt Disney World (in Florida), higher attendance in Disneyland (in California) and increased occupied room nights at both resorts. The company’s consumer products segment netted $885 million in revenue, a 16% year-over-year increase, thanks to increases in merchandise licensing for Disney Channel, Mickey and Minnie, and Planes products.
The segment with the largest boost in revenue was Disney’s studio entertainment business, which reaped $1.8 billion during the quarter — a whopping 35% increase — as mega-hit Frozen continued to rake in the dough. The Idina Menzel/Kristen Bell-helmed film boosted Disney’s at-home entertainment sales (that is, DVD sales) as well as theatrical revenue abroad. Though Disney did not discloses the at-home or abroad sales as a result of Frozen, the company said that the results compare favorably to the at-home sales for Wreck-It-Ralph and international theatrical sales for Wreck-It-Ralph and Oz The Great And Powerful during the same time last year.
Source: Forbes