Disney 4Q comes in below forecasts; shares fall

[November 12, 2010]  LOS ANGELES (AP) -- The Walt Disney Co. said Thursday that its fiscal fourth-quarter net income fell 7 percent, hurt by the shift of some revenue for ESPN to the third quarter and one fewer week in the quarter than a year ago. The results were short of analysts' expectations and shares fell.

Net income in the three months to Oct. 2 fell to $835 million, or 43 cents per share, from $895 million, or 47 cents per share, a year earlier.

Factoring out one-time items, adjusted earnings came to 45 cents per share, down from 46 cents a year ago and a penny below the forecast of analysts polled by Thomson Reuters.

Shares dropped $1.06, or 2.9 percent, to close at $35.93 after the earnings were released. They came out surprisingly early, about 15 minutes before their usual release at the minute the market closes, and the company said it was investigating what happened. In aftermarket trading, shares lost another 21 cents to $35.72.

Revenue fell 1 percent to $9.74 billion from $9.87 billion a year ago. That also fell short of forecasts of $9.94 billion.

Advertising revenue rose at ESPN and ABC but the one fewer week tamped down the results.

Parks and resorts revenue fell 1 percent as fewer people closed on Disney Vacation Club properties.

The movie studio's revenue rose 6 percent, driven by international ticket sales to "Toy Story 3."

[Associated Press; By RYAN NAKASHIMA]

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