By Gina Keating
Disney shares rose 5.5 percent in after-hours trade on the first-quarter results and the company's outlook for more growth in parks and media networks -- its top two earners. The stock's rise more than offset a 2.7 percent drop in regular trade.
Wall Street had been anxiously watching for signs that the slowing U.S. economy had led to weakened advance bookings at Disney's domestic resorts, which some consider a bellwether of consumer confidence.
A strong ad market and tight supply pushed sales significantly ahead of last year's levels despite lower TV ratings, and are helping maintain growth, Chief Financial Officer Tom Staggs said.
'BETTER PREPARED'
The 63 cents per share earnings topped Wall Street's average target of 52 cents, according to Reuters Estimates.
"I think that it truly sounds like they are better prepared ... to deal with an economic downturn than they were during the last recession," said Greenfield, who has a buy rating on Disney and owns no shares.
Spooked consumers kept buying Disney-licensed video games and merchandise, especially for "Hannah Montana" and "High School Musical," propelling the consumer products division to 29 percent revenue growth in the quarter.
Disney also said its animated "Toy Story 3" would hit theaters in 2010.
Staggs said fiscal second-quarter ad rates were tracking at double-digit percentage rates ahead of last year and sales at Disney TV stations were ahead of last year by mid-single-digit percentages.
Profit at Disney's parks and resorts business, which also includes cruise ships and vacation properties, rose 25 percent to $505 million. The parks results were helped by record holiday attendance and higher consumer spending at Walt Disney World in Florida, strong attendance at Disneyland Paris and improved attendance at Hong Kong Disneyland.
As a result of its strong earnings statement and cash flow, the company plans more share buybacks and has repurchased $1.5 billion of its shares so far this year, Staggs said.
Disney shares in after hours trade rose to $31.71 from a close of $30.07 on the New York Stock Exchange, where the stock had dropped 83 cents, or 2.7 percent, for the day.
(Editing by Braden Reddall)
