Walt Disney (NYSE: DIS) reported its fiscal third quarter earnings Thursday afternoon and, as expected, it was a tough quarter for the entertainment conglomerate.

We noted in our earnings preview that analysts were expecting to see lower profit, and that is exactly what Disney did this afternoon, reporting a 26% dip in quarterly profit.

The company matched analyst estimates by posting 51 cents per share for its fiscal third quarter ended June 30.

This afternoon,the Walt Disney (NYSE: DIS) is going to be reporting its fiscal third quarter earnings.

Analysts are expecting to see the company hit hard by the current recession, with all segments of the company's business have felt the impact.

There truly are very few places to hide during the current financial crisis and economic recession. Trust in the markets is at an all-time low, and volatility is at an all-time high. The most senior of professionals in this business are shaking their heads in amazement.

We have not seen anything like this during our lifetimes. When it will end is anyone's guess. The silver lining, I suppose, is that it will indeed end at some point. When it does, investors can look forward to a landscape of well-run companies trading at discounted prices.

One of my favorite blue-chip names that have been taken down along with everyone else is Walt Disney Co. (NYSE: DIS).

I wrote about the company in early September when times were tough, but before the financial crisis brought its wrath. At the time, I thought shares were undervalued at a price just north of $30 per share.

When I hear about theme park accidents, my first reaction is always: must have been a shadowy operation. The kind of rides for which the operators deserve the designee "carnies" -- the ones who pack up and disappear after a wild long weekend of cotton candy, elephant ears and brightly-colored rolls of tickets. Not Disney. No, not Walt Disney (NYSE: DIS)!

But the Magic Kingdom was a little less magic today as several visitors were injured on a water ride at Walt Disney World in Florida. Although they weren't hurt badly and it didn't seem a hugely structural problem -- the exit platform was faulty, said Disney -- it's nonetheless a shattering of my preconceptions: that Disney is in an entirely different category than those other guys, with their poorly-screened (or not screened at all) staff and their less-polished rides.

Disney stock had suffered a bit this evening, down 44 cents or 1.22% to $35.59 on the day, then down another 12 cents in after-hours trading despite strong Pirates of the Caribbean: At World's End numbers. Will there be more damage before the week is out, or is this a temporary setback? The appearance of the phrase "Disney accident" on Google's Hot Trends ranking can't be great tidings.

One thing is for sure in this world -- death and taxes ... and the steadiness of theme parks from the Walt Disney Co (NYSE:DIS). The branded entertainment company that opened Disneyland in 1955 may be changing its tune a bit, as rumor has it that there is a top-secret development unit looking to expand into a new theme park model that goes quite a bit beyond getting paying customers to visit Florida or California, where its two main theme parks are located.

What is the plan? It seems natural that Disney wants to make its theme parks a little more accessible to millions of more customers who don't have the capability to get halfway across the nation to visit either of its main theme parks. But, instead of actually building new parks and so forth, the company may be planning more niche resorts and attractions around the world, instead of the super-huge theme parks like Orlando's DisneyWorld.

But before that happens, Disney is getting into the "travel concierge" business of sorts by offering what it calls "Adventures by Disney." Travelers and vacationers can pay for guided Disney tours to popular destinations around the world, including Italy and Ireland. Add more Disney cruise ships to its stable and Disney looks to be expanding in the largest way. Will it pay off for investors though?

Walt Disney Co. (NYSE:DIS) won't have to wish upon a star when it reports fiscal first quarter results on Feb. 7. The company's results, while not particularly magical, will be fine.

Revenue is expected to rise 7.6 percent to $9.52 billion, according to Thomson Financial. Profit is expected to drop to 39 cents from 35 cents as the second-largest media conglomerate boosts spending on its theme parks and digital business.

Last year was a good one for Disney at the box office. "Pirates of the Caribbean: Dead Man's Chest" was the top movie of the year, grossing more than $423 million, according to Box Office Mojo. Another Disney movie "Cars" was second with $244 million. ABC's "Dancing with the Stars" was the third-most popular last year while "Desperate Housewives" was the eighth, according to Nielsen Media Research. Of course, "Lost" will attract scads of viewers once original shows start airing.

The theme parks have done well this year. Chief Financial Officer Thomas Skaggs said in December that the company was looking to expand its theme park business outside the U.S. The weak dollar should be good for Walt Disney World and Disneyland Park which attract tourists from Europe and Asia.

Wall Street has mixed views on Disney.

Fourteen analysts rate the stock either a strong buy or buy. Twelve consider it a hold and one a sell. Their mean price target is $37.62.

Also check out some other earnings reports that we're following, and let us know what you're expecting.