Walt Disney Co Q3 2016 Earnings Results

The Walt Disney Company reported their earnings today for the first quarter (Q3) of fiscal year 2016 which ended on July 2, 2016.  According to earnings report, Disney delivered another quarter of double-digit EPS growth. Iger is thrilled with the continued performance. Disney’s results are evidence that the asset mix is strong, as is the company’s ability to execute in ways that enhance the Disney brand and create value for shareholders while the company invests for future growth.

During the conference call Q&A, Iger stated the cruise business was strong and used this as an opportunity to remind everyone about the two new ships on the horizon. It was noted in the earnings report that there was decrease in fuel cost that I suspect may be correlated to DCL’s current success.

For Q3-2016, TWDC reported earnings of of $2.6 billion, or $1.59 a share. Revenue increased 9% to $14.3 billion.

The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the quarter 6% to $4.4 billion with income up 8% to $994 million. Disney’s stock closed today at $96.67.

TWDC cited operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations. Results were adversely impacted by the absence of the Easter holiday, which occurred in the third quarter of the prior year compared to the second quarter of the current year.

Higher operating income at our domestic operations was due to guest spending growth and lower costs, partially offset by lower volumes. The increase in guest spending was driven by higher average ticket prices at our theme parks and cruise line. Lower costs reflected decreases in labor and marketing costs from efficiency initiatives. Costs also benefited from lower infrastructure costs due to timing and a decrease in fuel costs. These decreases were partially offset by higher depreciation, labor and other cost inflation and costs associated with new attractions. The decrease in volumes was due to lower attendance, partially offset by higher occupied room nights.

Lower operating income at our international operations was due to higher pre-opening costs at Shanghai Disney Resort and lower attendance and higher operating costs at Disneyland Paris. These decreases were partially offset by cost efficiency initiatives as well as higher volumes and guest spending at Hong Kong Disneyland Resort.

For more information and an overall report click over to the Q3-2016 Earnings Report.

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