Profit Taking Spoils the Magic at Disney (DIS)

August 7, 2012 5:30 PM EDT
Shares of Walt Disney (NYSE: DIS) are trading lower after the bell on Tuesday on profit taking following the release of the company’s earnings report for fiscal Q3. Compared to last year, revenue at the company increased to $11.1 billion vs. $10.7 billion. Analysts were calling for revenues of $11.3 billion.

On the earnings front, the company reported the largest earnings in its history. EPS came in at $1.01, beating Wall Street estimates by 8c. In the prior year, the company reported earnings of $0.77.

Revenue improved in most areas, including media, parks, and consumer products. Studio entertainment was flat, and the interactive segment was lower by 22 percent. As always, media is goose that laid the golden egg for Disney, and revenue in this area continues to grow at a rate of 5 percent year-over-year.

Operating income at Cable Networks increased $14 million to $1.9 billion for the quarter due to growth at the domestic Disney Channels and ABC Family, partially offset by a decrease at ESPN.

Shares of Disney are trading lower by 2 percent in after-hours trading on Tuesday. The company is higher by nearly 30 percent year-to-date.

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