Disney profit up, studio strong

The Hollywood Reporter
May 9, 2007

The Walt Disney Co. reported Tuesday a higher-than-expected net profit as a result of strength across all its business segments, especially its movie studio business.

The No. 3 U.S. entertainment company reported a net profit of $931 million, or 44 cents per share, compared with $733 million, or 37 cents per share, in last year's second quarter. Revenue rose to $8.07 billion from $8.03 billion a year ago.

Analysts, on average, expected net earnings of 36 cents per share and revenue of $8.1 billion, according to Reuters Estimates.

Disney shares traded on Tuesday at a multiple of 17.8 times 2008 earnings. Viacom Inc. was trading at 16 times 2008 earnings and Time Warner Inc. was at 18.6 times.