The Walt Disney Company (NYSE:DIS) released its earnings report for the three months through March 31 2014 this afternoon after the market closed in New York. The company showed earnings per share of $1.11 for the three months period, which it records as its second quarter of fiscal 2014. Revenue for the period came in at $11.65. On today’s market shares in Disney traded flat, despite the wider depression in the market. The company’s closed at $81.03 on Tuesday.
26 analysts following The Walt Disney Company (NYSE:DIS) , who were surveyed by Businessweek, expected the company to show earnings of 95 cents per share in this afternoon’s earnings report. Revenue was expected to come in at $11.2 billion. In the same three months of 2013 Disney managed to earn 79 cents on revenue of $10.9 billion.
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Disney’s growth still best in class
For a big entertainment company, The Walt Disney Company (NYSE:DIS) has performed incredibly in recent years. The firm’s growth has been so good that its stock chart is closer to that of a tech company than it is to its competitors. Over the long term, Disney still appears to be the best large entertainment company around, and the firm’s stable of brands, and its appreciation of modern technology, are adding to its potential in the minds of investors.
Netflix, Inc. (NASDAQ:NFLX) is widely thought to party represent the future of television, and The Walt Disney Company (NYSE:DIS) is helping to ensure that by offering it access to its stable of brands, in exchange for a hefty fee. The company’s forays into the world of videogaming may carry bad memories for investors, but it seems that business may be much improved with the company’s Disney Infinity title.
With this afternoon’s earnings report showing good returns from Frozen and Captain America: The Winter Soldier in the second fiscal quarter of 2013, it seems that The Walt Disney Company (NYSE:DIS) can do little wrong. The company’s ability to leverage its brands for mass appeal and earnings growth knows no rivals.
Disney shares grew by more than 2% directly after the company release its numbers for the second quarter of the year. The company seems almost immune to a decline in prospects of late, and today’s beat on both earnings and revenue show that the rise in its stock is well founded.
The Walt Disney Company (NYSE:DIS) is, however, priced for the growth that investors think it can deliver in the medium and long term. The company’s stock is currently trading at more than 22 times 2013 earnings. That prices a large amount of growth into its earnings report, and promises some volatility if the firm’s growth path deviates from the image investors have for the company.
The next year will see The Walt Disney Company (NYSE:DIS) continue to develop its stable of brands. At some point the Marvel universe may stop earning, and surprise hits like Frozen tend to be few and far between, but the company has three Star Wars movies on the way, and plenty of depth sitting behind those releases, exciting investors.