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Disney Reports Earnings for Fiscal Year 2008 and Q4 2008

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  • Disney Reports Earnings for Fiscal Year 2008 and Q4 2008

    http://corporate.disney.go.com/inves...gs/2008_q4.pdf

    Webcast: Event Details

    Disney's 4Q net income falls 13 percent
    November 6, 2008 7:42 PM ET


    LOS ANGELES (AP) - The Walt Disney Co., the family entertainment company that owns ESPN and ABC, on Thursday predicted tough times ahead as advance bookings at its theme parks slowed for the holidays. The company also reported a 13 percent decline in fourth-quarter income.

    The company's earnings fell below analysts' expectations, in part because it had to set aside a cash reserve to handle fallout among its businesses from the bankruptcy of Lehman Brothers.

    Another factor was a 42 percent drop in Disney's movie studios operating profit to $98 million on flops such as "Swing Vote" and "Miracle at St. Anna." Also its loss at the ABC network and its 10 TV stations nearly quintupled to $150 million as advertising spending slowed.

    "Consumer confidence is the lowest we've seen in over three decades, and even the best product out there is feeling the effect," Chief Executive Robert Iger told analysts on a conference call.

    "While we have great demand in the marketplace, we believe consumer spending will be down," he said. "That could impact us possibly during the holiday season but almost certainly during calendar season 2009."

    Attendance fell 1 percent in the quarter at its U.S. parks in Anaheim, Calif., and Orlando, Fla., while advance bookings at Walt Disney World through the Christmas holiday period are down 1 percent, Iger said.

    As he warned of a downturn, he also announced the company would begin offering seven-night stays at Walt Disney World for the price of four in the new year.
    Disney's 4Q net income falls 13 percent: Associated Press Business News - MSN Money
    "If you build it right, they will come." - Bob Iger

    "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



    "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

  • #2
    Re: Disney Reports Earnings for Fiscal Year 2008 and Q4 2008

    Disney shares recover after results spark early selling - MarketWatch

    Disney shares recover after results spark early selling
    By Russ Britt & David B. Wilkerson, MarketWatch
    Last update: 2:30 p.m. EST Nov. 7, 2008

    LOS ANGELES (MarketWatch) -- Wall Street and investors sounded the warning call Friday after Walt Disney Co. appeared at last to succumb to a difficult economy by reporting earnings that came up short of estimates, but some analysts maintained that the blue-chip company's fundamentals were strong.

    While they plunged more than 8% shortly after the open, shares of Disney turned higher as the session progressed. The shares swung to a gain of 5%, to $23.97, in afternoon trading.

    The earnings report caused many analysts to adjust their estimates for a company that has seemed largely immune to troubles that other firms were experiencing in the face of a crumbling economy.

    S&P analyst Tuna Amobi cut his rating on Disney to "hold" from "strong buy" after the earnings report was released late Thursday, slashing his price target by $7, to $25.

    "In a sobering near-term outlook, Disney sees further sharp deterioration in park bookings and ABC/ESPN ads, while halting share buybacks," Amobi wrote in a morning note to clients.

    Other analysts noted, however, that it was Disney's first earnings shortfall to come along in some time.

    Doug Mitchelson of Deutsche Bank maintained a buy rating on Disney, noting that recent weakness in the stock seems to have been the result of bracing for the day when recession-like conditions would hit Disney.
    "Unlike some peers, Disney's challenges are predominately cyclical, not secular," Mitchelson wrote in his note. "Currency risk is fully hedged. Its brands remain strong and growing, and barriers to entry in its businesses are very high."
    "If you build it right, they will come." - Bob Iger

    "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



    "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

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