subject: Disney Tops Zacks Estimates [print this page] The Walt Disney Company (DIS) recently reported third-quarter 2010 results that topped Zacks Consensus expectations. The quarterly earnings of 67 cents a share easily surpassed the Zacks Consensus Estimate of 59 cents and jumped 29% from 52 cents delivered in the prior-year quarter.
Disney's total revenues for the quarter rose 16% to $10,002 million from the year-ago quarter, and beat the Zacks Consensus Estimate of $9,334 million, whereas total operating income surged 37% to $2,537 million.
Recognition of deferred revenues at ESPN and solid theatrical releases, most notably Alice in Wonderland, Iron Man 2 and Toy Story 3 were the major factors driving growth.
Disney's Segment Breakdown
Media Networks revenues rose 19% to $4,729 million, driven by revenue increase across Cable Networks (up 28%) and Broadcasting (up 4%). Total operating income swelled 43% to $1,885 million. Cable Networks' operating income grew 50%, benefiting from the recognition of deferred revenue of net $344 million at ESPN, and increase in affiliate and advertising revenue, offset by a rise in programming and production costs.
Operating income at Broadcasting climbed 2%, reflecting a jump in advertising revenue at owned television stations and rise in revenue from ABC Studios productions, offset by increase in programming expenses at the ABC Television Network.
Parks and Resorts revenues grew 3% to $2,831 million. However, operating income fell 8% to $477 million due to the rise in costs and fall in attendance at the theme parks, as well as higher fuel costs and drop in passenger cruise days at Disney Cruise Line.
Studio Entertainment revenues jumped 30% to $1,639 million, but posted a considerable rise in operating income to $123 million, compared to a loss of $12 million in the prior-year quarter, driven by the increase in worldwide theatrical distribution and lower marketing and distribution costs.
Consumer Products revenues soared 19% to $606 million and operating income surged 22% to $117 million, reflecting improvement at its retail business, growth at Publishing driven by Marvel titles, and a fall in costs at The Disney Stores North America.
Interactive Media revenues for the quarter jumped 74% to $197 million and posted an operating loss of $65 million, an improvement of 13% over the prior-year quarter, reflecting the rise in sales of video games, partly offset by increased marketing costs.
Financial Aspects
During the quarter, Disney generated free cash flows of $1,377 million, up 21% from the same quarter last year. The company ended the second quarter with cash and cash equivalents of $2,951 million, total borrowings of $12,627 million and shareholders' equity of $37,959 million, excluding a non-controlling interest of $1,642 million.
