Walt Disney Co. (NYSE: DIS) continues to defy skeptics, posting second-quarter profit that beat Wall Street expectations thanks to fee increases at ESPN and a robust business at the theme parks.Net income at the second-largest media company rose 9% to $1.28 billion, or 66 cents a share, from $1.18 billion, or 57 cents, a year earlier. Excluding one-time items, profit was 62 cents, two cents better than Wall Street forecasts, according to Bloomberg News. Sales rose 2.1% to $9.24 billion. The stock, though, is down in after-hours trading for reasons that are not clear.
Among the highlights:
- Media Networks revenue for the quarter increased 8% to $4.1 billion and segment operating income increased 9% to $1.5 billion helped by growth at ESPN and the Disney Chanel.
- Parks and Resorts revenue increased 5% to $3.0 billion and segment operating income increased 3% to $641 million amid higher ticket prices and guest spending at Walt Disney World.
- Studio entertainment and consumer products showed declines amid lower box office receipts and the disappointing performance of "The Chronicles of Narnia: Prince Caspian."
Disney has so many ways of making money that if one business falters, the others take up the slack. That's why it remains the best managed of any media company and the one stock in the sector that remains a buy.
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