Entertainment giant The Walt Disney Company (
) late Thursday posted fourth quarter earnings results that fell
short of analyst expectations, but noted it's "optimistic" about
The Burbank, CA-based company reported fiscal fourth quarter net
income of $835 million, or 43 cents per share, compared with $895
million, or 47 cents per share, in the year-ago period. Excluding
one-time items, adjusted profit was 45 cents per share.
Revenue fell 1% from last year to $9.7 billion.
On average, Wall Street analysts expected a slightly higher
profit of 46 cents per share, on slightly larger revenue of $9.95
Looking ahead, Disney CFO Jay Rasulo commented, "The current
trends in our business are encouraging. We're also optimistic about
our creative pipeline. Thus, we believe we are well positioned to
deliver strong results in 2011."
Disney shares rose 84 cents, or +2.3%, in premarket trading
The Bottom Line
We had removed shares of DIS from our recommended list on Apr.27,
when the stock was trading at $37.04. The company has a .97%
dividend yield, based on last night's closing stock price of
$35.93. The stock has technical support in the $31-$32 price area.
If the shares can build on today's news, we see overhead resistance
around the $36-$38 price levels. We would remain on the sidelines
The Walt Disney Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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