Feb 5 2014, 4:04pm CST | by Forbes
The Walt Disney Company resoundingly beat Wall Street estimates for its 2014 1st quarter earnings, with strong performances across the board from cable networks to parks to movies. But perhaps the biggest star was its hit “Disney Infinity” video game, which continued its remarkable run, nearly single-handedly turning around the entertainment giant’s interactive division.
Overall, Disney posted earnings per share of $1.04 and revenue of $12.31 billion against Wall Street consensus estimates of $0.92 and $12.25 billion, respectively. Disney stock surged over 2% in after hours trading.
“We had an incredibly strong first quarter, delivering a 32% increase in adjusted earnings per share and double-digit increases in operating income in all business segments,” Disney Chairman and CEO Robert Iger said in a statement. “These results reflect the strength of our unprecedented portfolio of brands, a constant focus on creativity and innovation, and the continued success of our long-term strategy.”
The cable networks business, as usual, provided the largest amount of sales and profit, growing 34% in the latter category. That helped cover up a 32% decline in income from the ABC broadcasting network segment. Meanwhile, the studio business grew 23% from a year ago, and increased income by 75%. That came largely on the back of big hits like the animated ‘Frozen’ and Marvel superhero movie “Thor: The Dark World.”
Interactive — aka online media and games — is the smallest earner, but Infinity’s success made the unit Disney’s best performing year over year. Revenue increased 38% to $403 million and operating income jumped over 500% to $55 million. There have been reports that Disney is looking to layoff several hundred employees at this division. We’ll have to see what this news means for that decision.
Source: Forbes Business
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