The market looks to open slightly higher this morning thanks to a good earnings report from Disney (DIS). The company did well last quarter thanks to higher fee from pay TV operators that carry ESPN. Unfortunately, the theme parks continue to be weak.
For its fiscal fourth quarter, Disney earned 46 cents a share (not including one-time items) which is a nice increase over the 40 cents a share it made for last year’s fourth quarter. The consensus of the analyst community was for earnings of 41 cents a share, so that’s a nice earnings beat.
The weak spot continues to be the theme parks. Sales dropped by 4.2% but income dropped 17% to $344 million. I rate Disney a Hold for now. Before I raise it to a Buy, I want to see some recovery in the theme parks.