Tuesday, May 8, 2012

Disney Stock Price Rises On Earnings Report

Entertainment giant Walt Disney Co. (NYSE: DIS) released its second quarter earnings for 2012 today.  Diluted earnings per share rose 29% from the last quarter.  Disney earnings rose on increased revenue from its U.S. parks and resorts along with its ESPN network.

Disney cited a  revenue growth at its domestic operations which reflected a 10% increase driven by higher average guest spending.  Higher guest spending was primarily due to higher average ticket prices, daily hotel room rates, and food, beverage, and merchandise spending.  The higher revenues were partially off-set by higher labor costs, resort expansion, new guest offerings, and systems infrastructure investments.

“With 18% adjusted growth in earnings per share, we’re pleased with our second quarter performance,” said Robert A. Iger, Disney Chairman and CEO in an investor release. “We’re incredibly optimistic about our future, given the strength of our core brands, Disney, Pixar, Marvel, ESPN, and ABC, and our extraordinary ability to grow franchises across our businesses, such as The Avengers, which shattered domestic box office records with a $207.1 million opening weekend for a global performance of more than $702 million to date.”