The Walt Disney Company (NYSE:DIS) continues to record a fabulous run, especially on the movie business that continues to enjoy unprecedented success. Disney posted better than expected results for the third quarter of its fiscal year with earnings per share coming in at a record high of $1.28 against estimates of $1.17. Strong brands and franchises continued to create great value across the company. The spectacular performance of films like Guardians of the Galaxy cannot go unnoticed as they reinforced the tremendous value of Marvel.
The quarter in terms of earning was perfect, CNBC’s, Jim Cramer stated, as parks and resorts experienced an 8% growth, registering revenues of $4 billion, with operating income on the other hand also increasing by 23% to $848 million. “I have been saying since ‘Mad Money, started as long as, Bob Iger [CEO of Walt Disney], was there, this is a stock to own for your kids […] this is the stock to go to, okay this quarter was perfect,” said Cramer.
The media industry has been a buzz of activities in terms of mega deals a move that the company’s CEO, Bob Iger, has not discounted if only they guarantee impressive earnings going forward. Higher operating income in the quarter was a result of increased guest spending and higher attendance that was also partially offset by higher costs.
Theme Parks experienced increased admissions greatly influencing guest spending growth for the quarter. The Walt Disney Company (NYSE:DIS) also continues to perform extremely well on its studio entertainment segment that was up by 14%, generating revenues of $1.8 billion. The success of the film segment was attributed to exciting films such as Frozen, Captain America 2 and the winter soldier.
Higher income from program sales as well as affiliate sales caused operating income in the Broadcasting division to increase by 66% to $354 million. The Walt Disney Company (NYSE:DIS) has already enjoyed stellar results for the movie, Guardians of the Galaxy, which amassed over $94 million in its first opening weekend. Marvel entertainment acquired in 2009, continues to be the driving force behind such hit films.