Thursday, January 28, 2021

DISNEY EARNINGS SLUMP

November 12, 2010 by · Leave a Comment 

Demonstrating once again the judiciousness of Disney’s decision to acquire Pixar in 2006, revenue from Toy Story 3 offset double-digit declines in several of Disney’s other divisions in its fourth quarter. Thanks to the success of the animated movie, Disney’s movie studio swung to an operating profit of $104 million versus a $13-million loss during the same quarter last year. The movie also helped grow income in the company’s consumer-products unit, which reported operating income of $184 million, up 22 percent from the year-ago figure. On the downside, the company reported weak results at its theme-parks unit and broadcast and cable divisions. Profit for the quarter was $835 million, down 6.7 percent from the $895 million a year earlier. The results were disclosed 16 minutes before the close of trading on the New York Stock Exchange on Thursday, causing Disney shares to plummet nearly 5 percent in just a few minutes. Speaking to analysts during a conference call later, Lowell Singer, head of investor relations for Disney, apologized for the early leak and said the company is investigating.