Remember the theme song to The Mickey Mouse Club with Cubby, Annette, and the rest of the Mouseketeers? If I recall, Disney's
Who's the leader of the bland,
And I see, this is why
Hey there! High there! 52-week lows there!
You're as dumbstruck as can be,
Forever leisure stocks are stranded --
Why? Why? Why? Why?
Well, maybe not exactly like that.
The market has turned to Disney for a glimmer of hope that not all is lost in the entertainment sector. Between AOL Time Warner's
It did. Disney posted a 6% gain in fiscal first-quarter revenue, while earnings before one-time charges rose from $0.15 a share last year to $0.17 a share this time around. Every segment, save for the company's troubled consumer products division, delivered top-line gains, while the big winner, in terms of operating profits, was the company's theme park division.
Then again, a 20% climb in operating earnings at the park and resorts comes on the heels of sparse attendance figures in the December 2001 quarter. Travel-shy tourists stayed away from the iconic destinations like a double feature of Disney's Treasure Planet and The Hot Chick. But, they're coming back... slowly.
The company predicts healthy bottom-line growth over the next two years, with profit gains between 25% and 35%. Although, that's coming off the current sandbagged base of lackluster earnings. Still, it's taking steps in the right direction.
If I recall, the show used to end with a song that went something like this:
Now it's time to say, "Let's buy our favorite company!"