The Walt Disney Company (DIS), the entertainment conglomerate consisting of Disney and Pixar Studios, ABC Television Network, ESPN, Disneyworld and Disney Resorts, reported fiscal 4th quarter and full-year 2010 earnings results just before the closing bell Thursday. But the results disappointed: 4th quarter EPS reached 43 cents, below the Zacks Consensus Estimate of 46 cents. For the full year, Disney’s $2.03 per share missed the consensus of $2.09.
Zacks Consensus Revenue Estimate had been $9,924 million for the 4th quarter, and the most recent estimate was an even-more optimistic $9,936 million. But DIS reported revenues of $9,742 million — missing expectations by 1.9% and down 1% year over year. The stock fell 3% before regular market trading ended.
Disney President and CEO Robert Iger also cited a series of one-time items that led to the earnings and revenue misses, including “a programming writeoff at one of our equity networks, the timing of ESPN revenue recognition and the effect of one fewer week of operations this year than last,” which reportedly impacted results by 9 cents per share. Iger then expressed enthusiasm about its Marvel franchise portfolio going forward. Marvel had been acquired back in the 4th quarter of 2009.
Over the past month, analysts had been turning more positive about Disney earnings, as 6 of 24 analysts upwardly revised estimates for both the 4th quarter and full year. Eight analysts upped their expectations for fiscal 2011 in the past month, as well. That said, Disney shares had also been downgraded from Outperform to Neutral on November 2nd, as 3 analysts had downwardly revised earnings estimates for the quarter.
Among the positive developments articulated in the full-year earnings report, Consumer Products revenues rose 10%, and Studio Entertainment was up 9%. Both can be attributed by the success of 2010 releases such as Toy Story 3.
We will have much more on Disney earnings Friday morning before the opening bell. Shares have dipped another 0.6% in after-market trading. Disney currently carries a Zacks #3 Rank (Hold).
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