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Mark Vickery

Disney Beats on Theme Park Demand

by Mark Vickery

May 07, 2013 | Comments : 0 Recommended this article: (0)
DIS

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Household-name media conglomerate -- and no Mickey Mouse operation, thank you -- Disney Corp. ( DIS - Analyst Report ) posted strong numbers for the company's fiscal 2nd quarter 2013 report. The company brought in 79 cents per share on $10.55 billion in revenues, which was a 2 cent beat on the bottom line and relatively in-line with the top.

Disney owns a major film studio, the ABC Network, ESPN, leading international theme parks Disneyworld, Disneyland, et. al., and is currently entering its hottest time of year. That the company posted a positive surprise in its latest quarter speaks to strength within the company's latest offerings: blockbuster film "Iron Man 3" has posted among the best box office receipts for an opening weekend in history, sports network ESPN has had plenty of grist for the mill in an eventful college basketball, Major League Baseball and NFL Draft quarter, and theme parks continue to be an attractive option for families looking for a short-term getaway.

Analysts have been positive overall on earnings estimates leading up to Disney's report after the bell Tuesday, with 4 upward revisions for the quarter in both the past one month and 60 days, and 7 estimate raises in the fiscal year (ending September) over the same time periods. Thus, Disney had earned a Zacks Rank #2 prior to the earnings release.

The company does not issue official guidance, but with summer movie season getting into full swing, the NBA playoffs underway and theme parks continuing to be attractive, Disney looks to have a good quarter and fiscal year looking forward, as well. CEO Robert Eiger said he is "relatively bullish" on the rest of the fiscal year.

We'll have more on the entire earnings report tomorrow morning. As of now, DIS shares are up slightly in after-trading after a 1.55% upswing before the closing bell today. Consider that Disney is trading way, way above its year-ago price (+53.9%), so big upswings even after an earnings beat are not necessarily warranted, especially with no official guidance.

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