It's been a rough few months for Disney (NYSE:DIS). Question marks were raised when the company lost Pixar (NASDAQ:PIXR), battled with the Miramax founders, and snuffed out a cheap Comcast (NASDAQ:CMCSA) buyout offer. With its second-quarter report, Disney has answered with an exclamation point.
Profits of $0.26 were up from $0.15 a year ago. Revenues climbed by 11% to hit $7.2 billion. Despite a dip in its movie studio business after a string of celluloid clunkers, the company reported strong gains everywhere else. From higher attendance at theme parks to a robust season in cable operations, it was a refreshingly vibrant report.
Disney is looking to earn at least $0.98 a share this fiscal year with double-digit annual profit growth over the next three years. The latter is more important than the former. After all, the company earned $0.97 a share in 2001. Pundits will expect more. Disney should be able to deliver more.
But growing beyond this year is where it's really at, and it's gains beyond past levels that will silence the naysayers. If the company keeps this up, bashers of CEO Michael Eisner will clear out faster than Animal Kingdom patrons facing an early afternoon thunderstorm. And if you don't know what I'm talking about, trust me, it's quite the stampede.
Do you think Disney is on the right track for a turnaround? Should Eisner stay or should he go? All this and more -- in the Disney discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz owns shares in Disney and Motley Fool Stock Advisor (take a free trial). recommendation Pixar.
