Disney: On Second Thought

Maybe those earnings were really good:

Walt Disney Co., the world’s biggest media company, rose the most in six months after analysts said fourth-quarter profit topped estimates.

Excluding restructuring and impairment costs of $216 million, profit amounted to 50 cents a share, according to Michael Nathanson, an analyst at Nomura Securities International Inc. in New York. That beat the 47-cent average of 25 analysts’ estimates compiled by Bloomberg.

Disney gained $1.99, or 5.6 percent, to $37.92 at 11:05 a.m. in New York Stock Exchange composite trading, the biggest intraday advance since May. Disney Chief Financial Officer Jay Rasulo fully disclosed restructuring, programming and film studio writedowns during the company’s conference call after U.S. markets closed yesterday.

“Upon scanning the press release, the results seemed weak,” Nathanson wrote in a note today. “However, it turns out that you can’t judge a quarter by a press release.”

Yesterday the stock fell $1.06, or 2.9 percent, to $35.93 after the report was released early, before U.S. markets closed. The company said it is investigating how the information became available.

Posted by on November 12th, 2010 at 1:10 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.