Disney Posts Q2 Profit, Disappoints Analysts

The Walt Disney Company’s shares fell more than 5 percent after the company announced earnings and revenue for its second quarter, ended April 2, 2011, below analysts’ expectations.

Disney reported net income of $942 million, or $0.49 per share, on revenues of $9.1 billion, compared to net income of $953, or $0.48 per share, on revenues of $8.6 billion for the same period last year.

The company’s media networks division produced the largest operating income of $1.5 billion compared to $145 million for parks and resorts, which include Disney Cruise Line, $142 million for consumer products and $77 million for studio entertainment, while interactive media posted a loss of $115 million.

Disney said the results were impacted by decreases at Disney Cruise Line and Tokyo Disney Resort, partially offset by increases at domestic and international parks and resorts.

Lower operating income at the cruise line was attributed to increased operating and promotional costs driven by the launch of the Disney Dream and higher fuel and other operating costs for the existing fleet, partially offset by higher passenger cruise days.

At press time Disney shares traded for $41.61 compared to closing at $43.91 May 10. The consensus 12-month price target is $49; the 52-week price range has been from $30.72 to $44.34.

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