Disney announced its first quarter earnings today, beating expectations with earnings of 63 cents per share (58 centers per share non-GAAP) against analyst expectations in the 55-56 cents per share (non-GAAP) range. The studio division posted a loss of $84m, which is on the low end of the projected loss of 80-120m announced on March 20, when Disney announced it was writing down 200m against John Carter, which at that time was 10 days into its theatrical run. John Carter currently stands at $270m in global box office gross, a respectable number, but insufficient due to the $250m production investment and $100m marketing investment. (Studios typically get about 45% of Box Office Gross, so the John Carter tally to date, before DVD and other income, is approximately $125m net to Disney against investment of $350M). Click to view full report.
Following is the Wall Street Journal Report
Walt Disney’s earnings just hit the Tape, with earnings up 21% as strength at the company’s cable networks and theme parks offset a loss at its movie studio.
The company reported earnings of 63 cents a share, or $1.14 billion, on sales $9.63 billion in its fiscal second-quarter. The non-GAAP earnings were 58 cents a share.
That topped market consensus, which was for EPS of 56 cents a share (55 cents, non-GAAP), net of $998 million, on sales of $9.57 billion.
A year ago, the company earned $9.42 million, or 49 cents a share, on sales of $9.08 billion.
Shares are up 1.6% in late trading, at $44.82.
For the quarter, the company’s studio division posted a loss of $84 million; this is the group that had to absorb the “John Carter” write-down. But as Dow Jones’ William Launder wrote, the box-office flop hardly seemed to matter:
Disney’s studio loss isn’t quite as bad as the $120 million loss Disney warned it could reach back in March, due to dismal box office performance for “John Carter.” With second-quarter profit gaining 21% and “The Avengers” breaking new theater records, the studio loss is unlikely to get much more attention from investors. If that’s not enough, CEO Bob Iger tells CNBC that Disney will likely keep up its mix of shareholder-friendly buybacks and dividends.
Elsewhere, the parks and resorts unit saw the biggest boost to its profit, which rose to $222 million from $145 million last year.
The media networks division’s profit rose to $1.73 billion from $1.52 billion last year. Consumer products saw profit inch ahead, to $148 million from $142 million. The interactive media unit narrowed its loss from last year, to $70 million from $115 million.
Company’s hosting a conference call at 5 p.m. ET.