Remember when I said investors weren’t necessarily betting against Disney’s (DIS) results? Perhaps that should be rescinded. The mega-entertainment company is falling in after-hours trading following the release of its earnings after the close.
Associated Press/Walt Disney Studios/Marvel Disney reported a profit of 77 cents, beating analyst forecasts for 76 cents according to FactSet, on sales of $11.6 billion, ahead of analyst estimates for $11.4 billion.
Robert Iger, Disney’s CEO, was as happy as Winnie the Pooh with a jar of honey after the release. "We're extremely pleased with our results for Fiscal 2013, delivering record revenue, net income and earnings per share for the third year in a row," Iger said in a company press release. "It was another great year for the Company, both creatively and financially, and we remain confident that we are well positioned to continue our strong performance and drive long-term shareholder
value."
(Let’s assume Iger’s saying what he’s expected to say, because how can you describe Disney’s year as “great” on the creative front when it released both the Lone Ranger and Thor: The Dark World?)
Investors weren’t nearly as pleased, however. Disney’s shares have dropped 3% to $65.17 in after-hours trading.
Sterne Agee’s Vasily Karasyov and Kutgun Maral highlight the numbers from Disney’s cable networks. They write:
Cable Networks revenue $3.57 bln vs. $3.65 bln estimate SLIGHTLY LIGHT; operating income $1.28 bln WORSE than our $1.37 bln forecast.
We think the Street will view the results as soft given that cable networks revenue and operating income came in below our estimates. (We believe we were the Street low.)
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