The Walt Disney Company’s (DIS) first-quarter 2011 earnings beat the Zacks Consensus Estimate, and rose 45% from the prior-year quarter, reflecting growth across Media Networks, Studio Entertainment, Parks and Resorts and Consumer Products.
Management hinted that for second-quarter 2011, advertising revenues at both ESPN and TV stations are trending up in the double-digits compared with the year-ago quarter, and added that the company is witnessing a rise in domestic hotel reservations by about 3%. Disney is also concentrating on the development of motion pictures under its brands Disney, Pixar and Marvel.
The company has also been actively managing its cash flows returning much of its free cash to shareholders. Our target price of $48.00, 18.5X 2011 EPS, reflects our Outperform recommendation on the shares.
DISNEY WALT (DIS): Free Stock Analysis Report
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