Disney profits rise on studio strength
But stock slips despite solid showings by sleeper hit 'Pacifier' and Pixar-produced 'Incredibles'.
May 11, 2005: 4:03 PM EDT
LOS ANGELES (Reuters) - Walt Disney Co. posted a 30 percent rise in quarterly earnings Wednesday driven by its studio, which produced the sleeper movie hit "The Pacifier" and distributed the animated blockbuster "The Incredibles".
But Disney (down $0.35 to $26.60, Research) stock fell about 1.3 percent as investors were apparently disappointed by the news, which was released early after what a Disney spokeswoman called the accidental release of an internal e-mail containing earnings information.
The giant entertainment company had been scheduled to report results after the stock market closed.
Net income rose to $698 million or 33 cents per share from $537 million or 26 cents per share a year earlier, the company said.
The quarter included a $61 million benefit from Euro Disney theme park debt restructuring and a $32 million charge to write down an investment.
Revenue rose to $7.8 billion from $7.2 billion.
Wall Street expected earnings of 32 cents per share before items and revenue of $7.8 billion, according to analysts polled by Reuters Estimates.
Chief Executive Michael Eisner said the company was "well on the way" toward double-digit earnings growth. Disney's repeated, long-term goal is double-digit growth through at least 2007.
The studio, led by the success of "The Pacifier" and DVD sales of Pixar Animation Studios Inc. (down $0.79 to $47.61, Research) movie "The Incredibles", posted a 65 percent rise in income to $253 million.
Parks income rose 3 percent $193 million, Media Networks income rose 3 percent to $725 million and Consumer Products earnings rose 48 percent to $111 million.