Disney’s Q4 Earnings Miss Estimates; Outlook Positive (DIS)


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Entertainment giant The Walt Disney Company ( DIS ) late Thursday posted fourth quarter earnings results that fell short of analyst expectations, but noted it's "optimistic" about 2011.

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 billion.

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 Friday.

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 for now.

The Walt Disney Company ( DIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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