Tags: Disney | earnings | results | sales

Disney Beats Earnings Expectations for 11th Straight Quarter

Tuesday, 04 August 2015 05:30 PM EDT

Disney continued its long winning streak with its latest quarterly report Tuesday, with earnings of $1.45 a share beating analysts' expectations for the 11th quarter running. Revenue pushed upward to $13.10 billion, beating the year-ago figure of $12.47 billion by a neat 5%.

The entertainment conglomerate's three-year winning streak appeared to be in no danger of ending, either, with the release of the latest installment in the "Star Wars" film epic set for Christmas. Box office and merchandising bonanzas are predicted for the J.J. Abrams-helmed "Star Wars: The Force Awakens."

The company's big three franchise subsidiaries -Pixar, Lucasfilm and Marvel — continued to feed winning films into the Disney column. Marvel's "Avengers: Age of Ultron" has pulled in nearly $1.4 billion in worldwide box office, while Pixar's "Inside Out" bagged more than $600 million during the third quarter. Revenue's for Disney's studio entertainment increased for the quarter by 13% to $2.0 billion and segment operating income increased 15% to $472 million.

Riding the three-year winning streak, Walt Disney Company CEO Robert Iger again expressed his pleasure with the results, saying, "The strong results across our many diverse lines of business demonstrate the power of our unparalleled brands, franchises and creative content."

The studio's strong performance was attributed both to the big attendance at films like "Age of Ultron" and "Inside Out" but also to the continuing popularity of "Cinderella."

Not that there weren't a few clouds on Disney's sky-blue report. The company suffered the disappointing opening of "Tomorrowland," the sci-fi George Clooney picture that brought in just over $92 million domestically on a budget estimated at $190 million.

Though there have been some concerns about the spiraling cost it pays for programming, ESPN still notched a 7% gain in operating income, rising from $1.94 billion in the prior quarter to more than $2 billion in the quarter ending in late June. The company attributed some of the gain to the increased subscriber base that came with the addition of its new SEC Network — covering the powerhouse colleges in the southeastern U.S.

The company suffered some falloff in T.V. ad revenue and a drop in rates compared to the prior quarter, in 2014, the earlier figures gaining a big boost from the broadcast of the men's World Cup soccer tournament. Operating income for the Broadcast division dropped 15% to $300 million, in part because of the increased cost of buying rights and producing sports events.

The company's Interactive unit logged the only negative revenue performance compared to a year ago. Revenues for the operation declined from $266 million to $208 million. The company attributed the decline to a drop off in sales of its Infinity video game. The Interactive unit was combined earlier this year with the company's enormously successful Consumer Products unit.

Another reporting milestone came Tuesday in the person of Christine McCarthy, the company's first female chief financial officer, who was scheduled to report Disney's financial results along with Iger. Iger welcomed McCarthy as a professional of tremendous acumen and the new CFO, in turn, said how honored she was to take the position. She is the highest ranking woman in the history of the entertainment company.

Disney stock has been on a tear, rising almost 30% since the start of the year to a new high of $121.69 when the New York Stock Exchange closed Tuesday.

© 2025 Thomson/Reuters. All rights reserved.


Companies
Disney continued its long winning streak with its latest quarterly report Tuesday, with earnings of $1.45 a share beating analysts' expectations for the 11th quarter running.
Disney, earnings, results, sales
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2015-30-04
Tuesday, 04 August 2015 05:30 PM
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