Parks Driving Growth For Disney: Report
Theme park revenue will help drive third-quarter growth for the Walt Disney Company, according to a Wednesday report by Credit Suisse.
"We believe the parks will benefit from strength at Disneyland Paris, eight extra vacation days in the quarter due to the Easter shift, as well as room reservations pacing up high single digit," said William Drewry, an analyst for the research firm.
When Disney (nyse: DIS - news - people ) reports its third-quarter earnings on Aug. 9, Drewry said that he expects theme park revenue to increase 9.9% to $2.7 million and earnings before taxes, interest and amortization to rise 16.6% to $509 million.
Long term, the analyst said that the company's decision to purchase Hungama, an Indian children's cable and satellite television network, for $30.5 million, will further brand name recognition.
As part of the deal, Disney will spend another $14 million for 14.9% of UTV Software Communications, an India-based media firm - something, which Drewry said will bolster the company's international portfolio as well.
Credit Suisse maintained an "outperform" rating on Disney's stock and a price target of $41.
http://www.forbes.com/2006/07/27/walt-disney-0727markets03.html?partner=yahootix
Hmm..I think you should buy. :lookaroun
Theme park revenue will help drive third-quarter growth for the Walt Disney Company, according to a Wednesday report by Credit Suisse.
"We believe the parks will benefit from strength at Disneyland Paris, eight extra vacation days in the quarter due to the Easter shift, as well as room reservations pacing up high single digit," said William Drewry, an analyst for the research firm.
When Disney (nyse: DIS - news - people ) reports its third-quarter earnings on Aug. 9, Drewry said that he expects theme park revenue to increase 9.9% to $2.7 million and earnings before taxes, interest and amortization to rise 16.6% to $509 million.
Long term, the analyst said that the company's decision to purchase Hungama, an Indian children's cable and satellite television network, for $30.5 million, will further brand name recognition.
As part of the deal, Disney will spend another $14 million for 14.9% of UTV Software Communications, an India-based media firm - something, which Drewry said will bolster the company's international portfolio as well.
Credit Suisse maintained an "outperform" rating on Disney's stock and a price target of $41.
http://www.forbes.com/2006/07/27/walt-disney-0727markets03.html?partner=yahootix
Hmm..I think you should buy. :lookaroun
:sohappy: