Disney Results Not Thrilling, Not Chilling

November 8, 2012 by Paul Ausick

Source: courtesy of Disney
The Walt Disney Co. (NYSE: DIS) reported fourth fiscal quarter and full-year 2012 earnings after markets closed today. For the quarter, the entertainment giant posted adjusted diluted earnings per share (EPS) of $0.68 on revenues of $10.78 billion. In the same period a year ago, the company reported an EPS loss of $0.59 on revenues of $10.43 billion.Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.68 and $10.92 billion in revenues.

For the full year, adjusted EPS totaled $3.07 on revenues of $42.28. The consensus estimate had called for EPS of $3.07 on revenues of $42.46 billion.

The company’s CEO is still basking in the acquisition of Lucasfilm:

Fiscal 2012 was a great year creatively, financially and strategically, resulting in record revenue, net income, and earnings per share. The addition of Lucasfilm will further fuel Disney’s creative engine across our company to create additional value for our shareholders and we’re confident the Company is well positioned to continue our strong performance and growth.

Operating income rose $471 million for the year and $118 million for the quarter at Disney’s cable networks due to the growth of ESPN and the Disney channels. At the company’s parks and resorts, operating income rose 22% for the year and 18% for the quarter, to $12.9 billion and $497 million, respectively.

Disney’s movie studio revenues fell 8% on the year to $5.8 billion and 4% in the fourth quarter to $1.4 billion. Quarterly operating income fell 32% in the quarter, to $80 million. This part of the company’s business really needs a boost, and that’s where Lucasfilm and its ‘Star Wars’ franchise comes in.

The company’s shares are down 2.1% in after-hours trading today, at $49.00 in a 52-week range of $33.28 to $53.40. The consensus target price for the shares was around $54.90 before today’s report.

Paul Ausick

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