Walt Disney Co., parent of Bristol TV programmer ESPN and the world’s biggest theme-park company, rose to a record high Wednesday after first-quarter sales and profit topped analysts’ estimates, spurred in part by its broadcast operations, Bloomberg News reports.
Disney, based in Burbank, Calif., advanced $2.18, or 5.3 percent, to $43.36 to close New York Stock Exchange composite trading. The old closing high of $43.05 was set in April 2000.
At mid-morning Thursday, Disney was down 20 cents at $43.16.
The recovering economy drove attendance gains at Disney theme parks and advertising growth at cable networks led by ESPN. Anthony DiClemente, an analyst at Barclays Capital in New York, predicted 3 percent higher attendance at parks in Orlando, Fla. Analysts on average projected sales of $10.5 billion. Income from Disney’s studio and consumer products also rose.
First-quarter net income rose to $1.3 billion, or 68 cents a share, from $844 million, or 44 cents, a year earlier, Disney said yesterday in a statement. Profit beat the 56-cent average of 23 analysts’ estimates compiled by Bloomberg. Sales rose 10 percent to $10.7 billion, also topping estimates.
Theme-park income increased 25 percent to $468 million as revenue expanded 8 percent to $2.87 billion. Attendance at domestic parks rose 2 percent from a year earlier, while per-capita guest spending increased 8 percent, Chief Financial Officer Jay Rasulo said yesterday on a call.
Bookings for this quarter are running 3 percent ahead of a year earlier, Rasulo said.
Earnings at Disney’s TV operations gained 47 percent to $1.07 billion, boosted by gains at ESPN, which aired two newly acquired college bowl games in the quarter.
Disney’s cable revenue gained 16 percent to $3.07 billion, led by higher fees and advertising sales at ESPN and the Disney Channel. Profit increased 42 percent to $771 million.
The company’s ABC broadcast unit boosted revenue 4 percent to $1.58 billion as Disney’s local TV stations increased advertising sales. Profit increased 64 percent to $295 million after ESPN took over the Rose Bowl telecast and ABC reduced its news and daytime production cost.
