Disney to report Q3 earns Tuesday
By David B. Wilkerson, CBS.MarketWatch.com
Last Update: 4:19 PM ET Aug. 7, 2004
SAN FRANCISCO (CBS.MW) -- Wall Street analysts expect Walt Disney Co. on Tuesday to report a higher fiscal third-quarter profit than it did in the year-earlier period, fueled by greater revenue from the company's theme park division.
According to a survey of analysts conducted by Thomson First Call, Disney (DIS: news, chart, profile) is expected to earn 27 cents a share on revenue of $7.15 billion, compared with its profit of 19 cents a share on $5.8 billion a year earlier.
Analyst David Miller at Sanders Morris Harris says the parks should benefit from "higher consumer costs, lower energy costs and pent-up demand for a 'Disney-branded' vacation."
Miller also recently told clients that two high-profile rides -- "Twilight Zone Tower of Terror" at California Adventure and "Mission Space" at Walt Disney World -- have been important keys to the division's growth.
Disney also raised its gate prices at some parks early in the quarter.
Meanwhile, analysts don't expect to hear good news at the ABC television network. Laura Martin at Media Metrics anticipates "flat revenue and lower profits" due to an unappetizing combination of decreased ratings and more expensive programming.
However, Martin says solid growth in advertising sales at the cable sports powerhouse ESPN and the ABC Family cable channel will help Disney's Media Networks division post 8 percent revenue growth compared to a year ago, as well as a 9 percent improvement in operating income.
At Disney's Studio Entertainment division, analysts say strong home video sales of such titles as "Scary Movie 3," "Kill Bill Vol. 1" and Finding Nemo" will lead to overall improvement, though the box-office bombs "King Arthur" and "Around the World in 80 Days" will lead to write-offs in the quarter.
Disney shares fell 29 cents to close at $21.99 on Friday.
By David B. Wilkerson, CBS.MarketWatch.com
Last Update: 4:19 PM ET Aug. 7, 2004
SAN FRANCISCO (CBS.MW) -- Wall Street analysts expect Walt Disney Co. on Tuesday to report a higher fiscal third-quarter profit than it did in the year-earlier period, fueled by greater revenue from the company's theme park division.
According to a survey of analysts conducted by Thomson First Call, Disney (DIS: news, chart, profile) is expected to earn 27 cents a share on revenue of $7.15 billion, compared with its profit of 19 cents a share on $5.8 billion a year earlier.
Analyst David Miller at Sanders Morris Harris says the parks should benefit from "higher consumer costs, lower energy costs and pent-up demand for a 'Disney-branded' vacation."
Miller also recently told clients that two high-profile rides -- "Twilight Zone Tower of Terror" at California Adventure and "Mission Space" at Walt Disney World -- have been important keys to the division's growth.
Disney also raised its gate prices at some parks early in the quarter.
Meanwhile, analysts don't expect to hear good news at the ABC television network. Laura Martin at Media Metrics anticipates "flat revenue and lower profits" due to an unappetizing combination of decreased ratings and more expensive programming.
However, Martin says solid growth in advertising sales at the cable sports powerhouse ESPN and the ABC Family cable channel will help Disney's Media Networks division post 8 percent revenue growth compared to a year ago, as well as a 9 percent improvement in operating income.
At Disney's Studio Entertainment division, analysts say strong home video sales of such titles as "Scary Movie 3," "Kill Bill Vol. 1" and Finding Nemo" will lead to overall improvement, though the box-office bombs "King Arthur" and "Around the World in 80 Days" will lead to write-offs in the quarter.
Disney shares fell 29 cents to close at $21.99 on Friday.