The pump is primed at Disney to reap the benefits of a big year at the movies.
With its Marvel movie "Avengers: Age of Ultron" just having notched the second-biggest domestic opening weekend of all-time and a new "Star Wars" movie coming this winter, analysts expect the company to post not only good movie studio results but also a big uptick in consumer products revenue and profits.
The second-quarter results were off to a good start. Earnings in the March quarter came to $1.23 per share, beating the $1.11 expected by analysts. Revenue rose 7 percent to $12.46 billion, also topping estimates for $12.28 billion.
Disney shares have risen 18 percent since the beginning of the year, while the Standard & Poor's 500 index has increased almost 3 percent. The stock has risen 38 percent in the last 12 months.
A portion of the company's second-quarter earnings release is below:
The Walt Disney Company today reported earnings of $2.1 billion for its second fiscal quarter ended March 28, 2015. Diluted earnings per share (EPS) for the second quarter increased 14% to $1.23 from $1.08 in the prior-year quarter. Excluding certain items affecting comparability, EPS for the quarter increased 11% to $1.23 from $1.11 in the prior-year quarter. EPS for the six months ended March 28, 2015 increased 18% to $2.50 from $2.11 in the prior-year period. Excluding certain items affecting comparability, EPS for the six months increased 16%.
“Our second quarter performance, marked by increased revenue, net income and EPS of $1.23, demonstrates the incredible ability of our strong brands and quality content to drive results,” said Robert A. Iger, chairman and chief executive officer of The Walt Disney Company. “The power of this winning combination is once again reflected in the phenomenal worldwide success of Marvel’s Avengers: Age of Ultron, which has opened at number one in every market so far.”
Shares of Walt Disney Co. (DIS) were up 0.53 percent in mid-morning trading on Tuesday.