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Disney profit up 12% on consumer products, studio, theme park gains

November 08, 2013|By Daniel Miller
  • The Walt Disney Studios in Burbank Ca., on Saturday, Jan. 19, 2013.
The Walt Disney Studios in Burbank Ca., on Saturday, Jan.… (Raul Roa / Staff…)

Walt Disney Co. reported a 12% increase in net income for its fiscal fourth quarter, lifted by the performance of its consumer products, studio, and parks and resorts divisions.

The Burbank company posted net income of $1.394 billion for the quarter that ended Sept. 28, up from $1.244 billion a year earlier. Revenue rose 7% to $11.568 billion, the Los Angeles Times reported.

Disney, the world's largest entertainment and media company, posted adjusted earnings per share of 77 cents, up from 68 cents a year earlier.

That was slightly ahead of the expectations of analysts, who predicted earnings per share of 76 cents, according to investment research firm Zacks.

Shares of Disney fell $1.85 on Thursday to $67.15 in regular trading. The stock was down to $66.48 in after-hours trading. The shares are up 35% on the year.

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Disney's earnings release came just hours after the company made a splash with video delivery service Netflix Inc., announcing a long-term agreement for several new live-action series based on Marvel Entertainment comic book characters. 

The shows from Disney-owned Marvel will begin their rollout on Netflix in 2015. Characters Daredevil, Jessica Jones, Iron Fist and Luke Cage will get their own shows. Each will receive a 13-episode story arc, to be followed by a miniseries based on Marvel's "The Defenders" franchise.

Disney's movie studio fared better than it did in the third quarter, when it posted a 36% decline in operating income from a year earlier -- partly because of marketing costs associated with “The Lone Ranger," the company's costly summer disappointment.

The studio posted operating income of $108 million in its fourth quarter, up 35% from a year earlier. Revenue was up 7% to $1.506 billion. Disney attributed the improvement to growth in video-on-demand distribution and better theatrical results.

The company had a hit in "Monsters University," which was released June 21 and has grossed $743 million worldwide, according to Box Office Mojo. The film offset the poor performance of "Lone Ranger." 

The Johnny Depp-starring film, released July 3, grossed $261 million worldwide but had a production budget of at least $225 million and cost tens of millions of dollars more to market.

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