Disney profits rise on studio strength

[notiCIas]

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.