Walt Disney Q3 profit meets forecasts
The company that recently announced a blockbuster deal to buy Star Wars producer Lucasfilm reported diluted earnings per share of 68 cents. That matched expectations from Wall Street analysts surveyed by Thomson Reuters I/B/E/S.
Net income for the quarter that ended in September rose 14 percent to $1.2 billion. Looking ahead, Disney faces challenges that will pressure results for its fiscal first quarter from October to December, Chief Financial Officer Jay Rasulo told analysts on a conference call. Among them, sports rights' costs will increase by $170 million while home video sales decline by $150 million in light of tough comparisons to Cars 2 a year earlier, he said.
Those issues will not hurt full-year earnings for fiscal 2013, Rasulo said. I'm confident we will have solid earnings growth for the rest of the year, he said.
CEO Bob Iger said Disney was entering a transition year after making investments in projects such as the Cars Land expansion at Disneyland Resort in California and a new cruise ship that launched this year. The company is moving from investment mode into a more compelling growth mode, he said.
Disney plans to stimulate its growth through its $4 billion acquisition of Lucasfilm, announced on Oct. 30, and plans for three new Star Wars films starting in 2015.
Results for the just-ended quarter were driven by the
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