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  1. #1

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    Apr 2005
    Concord, CA

    Walt Disney Co. outperformed media peers in 3Q

    While it is clear that the economy is having an impact on The Walt Disney Company, Iger's comment about being more resilient than its competitors is still holding true.

    I don't think it would be fair to say that we're recession-proof, but we're much more resilient than our competitors.
    The Iger difference - Apr. 11, 2008

    Associated Press

    Walt Disney Co. outperformed media peers in 3Q

    The Walt Disney Co.'s share price outperformed its media peers in the third quarter, falling just 1.6 percent over the period as investors valued consumer loyalty to its brands amid a weak economy.

    Shares in the owner of ESPN, movie studios, ABC and theme parks fell from $31.20 to $30.69 between June 30 and Tuesday, the end of the fiscal quarter. But some analysts see Disney (nyse: DIS - news - people ) shares slipping if the economy slows further.

    "Disney now trades at a substantial premium to its peers ... a premium which may not be fully justifiable," said Anthony DiClemente, an analyst with Barclays (nyse: BCS - news - people ) Capital in a research note Monday.

    Weak visitation to its U.S. theme parks and lackluster advertising sales are expected to hurt the company. Disney's movie studios also could be harmed by the transition to digital distribution as DVD sales decline, he said.

    In the same period, Time Warner (nyse: TWX - news - people ) Inc. shares fell 11.4 percent to $13.11, Viacom Inc. (nyse: VIA - news - people ) shares dropped 18.8 percent to $24.86, and News Corp. (nyse: NWS - news - people ) shares fell 20.8 percent to $12.15.

    The worst-performing stock among major companies in the sector was CBS Corp. (nyse: CBS - news - people ), which dropped 25.2 percent to $14.58, largely because its radio and TV stations and outdoor billboards are considered particularly susceptible to a weak economy.

    DiClemente said that among its peers, CBS is "the most vulnerable to the softer advertising trends anticipated to continue into 2009."

    Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
    Last edited by ROBONICS95; 09-30-2008 at 03:22 PM.
    "If you build it right, they will come." - Bob Iger

    "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney

    "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

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