Disney beats Wall Street

Samantha Loveday

By Samantha Loveday

May 8th 2008 at 9:46AM
Disney beats Wall Street

Better than expected Q2 for firm; movies and parks strong, but consumer products drop slightly.

Disney has become the latest media company to outperform expectations in its second quarter.

Net income in the fiscal quarter ending March 29th 2008 was $1.1 billion (58 cents per share), compared with $931 million (44 cents per share) in the same quarter last year.

Revenue increased by almost ten per cent to $8.7 billion.

Movies and theme parks were the star performers and the upcoming releases of Chronicles of Narnia: Prince Caspian (pictured) and Disney/Pixar's Wall-E should help the firm continue to perform well later in the year.

Disney Consumer Products, however, saw second quarter profit drop due to lower minimum guarantees from retailers. The division expects costs from video game development and its repurchase of 220 Disney retail stores from The Children's Place to cut in to profits for the rest of the fiscal year.

"We believe we are much better positioned in a difficult economic cycle than we were in the past," chief executive Bob Iger said in a conference call with analysts. "We believe this segment can sustain success for many years to come."