Disney
The family entertainment giant posted better-than-expected second-quarter results. Adjusted earnings climbed 12%, to $0.48 a share, just ahead of analysts perched at the $0.46-a-share mark. Revenue grew 6%, to $8.6 billion.
Three months ago, just one of Disney's five subsidiaries -- media networks -- posted year-over-year quarterly revenue growth. This time around, all five of the media behemoth's arms posted positive steps on the top line. Disney's theme parks segment was the only division to register lower operating profits.
The slip at its resorts owed to healthy promotional activity and higher fuel costs for its Disney Cruise Line vessels. Fellow cruise lines have sent out mixed messages on the fuel front. Carnival
The only other real downer in Disney's report came from ABC. Strength in Disney's cable properties helped offset a 24% slide in broadcasting operating profits, a contrast to what many rivals have recently reported. Operating profits soared 43% at CBS
However, the balance of Disney's media conglomerate is humming along nicely. The success of Iron Man 2's strong opening weekend, and the near-certain success of next month's Toy Story 3, validate the company's acquisitions of Marvel and Pixar. Sequels are also on the way for Cars and Monsters Inc. over the next two fiscal years. Disney intends to play up its franchise films, as long as there's a great story to tell through the sequels.
The appetite for Disney's product also remains strong; its ABC streaming application has been one of the more popular iPad downloads through Apple's App Store. Disney's decision to wean tourists off deep theme park resort discounts will be a cliffhanger to watch during the summer, but it's hard to bet against Disney when the company's starting to fire on all cylinders.
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