DISNEY’S movie studio boosted company earnings once again, with the debut of Avengers: Age of Ultron proving the continued strength of the Marvel superhero brand.
Net income grew 11 per cent in the April-June quarter to $US2.48 billion ($A3.36 billion), or $US1.45 per share, topping the $US1.39 expected by 10 analysts polled by Zacks Investment Research.
Revenue climbed 5 per cent to $US13.1 billion ($A17.75 billion), a hair short of the $US13.2 billion ($A17.88 billion) expected by six analysts surveyed by Zacks.
Disney said weakness in the euro hurt revenue at Disneyland Paris. Although parks revenue grew, the unit’s revenue came in below forecasts.
Studio revenue gains of 13 per cent topped all divisions, helped by “Avengers,” which grossed $US1.4 billion ($A1.9 billion) in theatres worldwide since its April release.
Every Disney segment grew except for its interactive division. There, revenue dropped and the unit broke even, reversing a profit from a year ago, as the Disney Infinity game lost momentum. The game is expected to get a surge of fresh content for this holiday season.
Shares fell 2.1 per cent to $US119.14 in after-hours trade following the release of results.
James Chen, senior market analyst with CityIndex.com.au, said overall Disney’s stock had been trading in a sharp bullish trend for the past several years.
“Within the past year alone, the stock has risen by more than 40 per cent to hit an intraday high on Tuesday above $US122.00,” he said.
“While the mixed results on Tuesday led to an initial wave of selling after hours, Disney has undoubtedly displayed continued healthy growth in its latest numbers, and the outlook for the stock remains bullish.
“Short-term downside support for the stock on a continued pullback after this earnings release is around the $US113.00 level, with an upside target at $US125.00.”