Theme Parks Drive Growth for Disney
Disney reported fiscal fourth-quarter earnings after the market closed today and showed improvement across all segments. Revenue was up 7% overall to $11.6 billion and net income rose 12% to $1.4 billion, or $0.77 per share.
Parks and resorts were the highlight, growing revenue by 8% to $3.7 billion and increasing operating income by 15% to $571 million. Media networks, which include ESPN, were the only segment where operating income fell, losing 8% from a year ago.
Disney is known for major studios like Marvel and Pixar, but it's downstream businesses like theme parks where Disney turns its characters into a major profit. Guest spending increased because demand didn't fall off when the company raised prices on tickets, merchandise, and hotel rooms.
Disney's stock has fallen 2.6% after hours, but I see few flaws in Disney's quarter. It's performing well and when you step back and look at the full year, you can see growth in revenue and profits across the company. Results like this are why the stock has been a stalwart for long-term investors.
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The article Theme Parks Drive Growth for Disney originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.