Earnings alert: Pixar buy dilutes Disney earnings
Last modified:May 10, 2006, 6:36 AM PDT
By CNET News.com Staff
Full story at : http://news.com.com/Earnings+alert+P...l?tag=nefd.top
Walt Disney reported a 12 percent rise in quarterly profit on Tuesday as strength in its television business and theme parks outweighed a sharp drop in profits at its film studio.
Earnings topped Wall Street expectations for Disney, which saw its TV advertising rates and viewership soar on hit shows such as "Desperate Housewives" and "Lost," but revenue lagged analysts' targets.
Shares rose 1.4 percent to a 52-week high of $30 in after-hours trading on Tuesday, after gaining 2.8 percent on the New York Stock Exchange.
Disney shares have risen 21 percent since January, when the company announced that it would buy Pixar Animation Studios to shore up its ailing feature animation business.
Sanders Morris Harris Group analyst David Miller said investors were bidding up Disney's share price on the belief that its four business units were finally "firing on all cylinders."