Disney's Star Turn
You've got to hand it to Disney
CEO Bob Iger. He keeps impressing investors. Wednesday morning, the family entertainment company blew past analyst profit targets for its third quarter on refreshingly wider margins.
Earnings rose 36% to $0.53 a share, with revenues inching up by 12% to hit $8.6 billion. Wall Street nailed the top-line production but was expecting profits to only grow to $0.44 a share. This isn't the first time that Disney has made mincemeat out of analyst estimates since Iger took over. Over the past year, Disney has trounced quarterly profit targets by at least a nickel a share. No, you can't blame all of the success on Iger's transition to power. This hasn't been a radical makeover at the top like we're seeing with CEO Mark Hurd over at Hewlett-Packard
. Still, it's hard to argue with success or pass on the chance to rub Iger's rabbit's foot and admire his perfect timing.
Digging deeper into the numbers, you find a company that improved in all four of its business segments. More than half of the 32% increase in operating profits for the quarter can be attributed to the turnaround in the studio entertainment segment. Those Chronicles of Narnia
DVDs have been selling like hotcakes, and the future looks pretty good now that Pirates of the Caribbean: Dead Man's Chest
are the two top-grossing movies of the year.