Disney: Strong Earnings Should Power The Magical Kingdom Forward
By Bret Jensen:Disney (DIS) just reported very strong earnings that exceeded expectations. It showed strong results across the board. Given its valuation and momentum, it looks like a great buy at this price level.Key data points from earnings report
- Profits increased 30%
- Disney continues to make strategic investments in the BRIC countries (Russia, China and India) that will drive future growth.
- Operating income in Disney’s network division (ABC, ESPN, Disney channel) grew 20% on a 9% improvement in revenue
- Operating income in Disney’s theme parks increased 33% on a 11% improvement in sales
- Overall Disney beat earnings estimates by 4 cents a share.
Disney – “The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide”. (Business description from Yahoo Finance).6 reasons DIS is a solid value at $35 a share:1. Disney’s growth prospects are undervalued. It has a five year projected PEG of just .92Complete Story »
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