Walt Disney Co. said its earnings rose a better-than-expected
11%, boosted in part because of the success of Marvel's "Avengers:
Age of Ultron" as well as the continued popularity of merchandise
related to the "Frozen" film.
Shares, though, fell 1% to $120.43 in after-hours trading as the
company's revenue fell short of analyst expectations amid slower
growth at media networks and its parks segment.
Disney's results in recent quarters have been buoyed by sales of
merchandise tied in with its hit movie "Frozen", which was released
in late 2013. Plans for a "Frozen Ever After" next year at Epcot
Center in Orlando, Fla., highlight Disney's strategy of focusing on
key franchises that live on for many years as theme-park rides,
toys, videogames, television shows, pajamas and just about anything
else that helps keeps revenue rolling in.
The company is expecting to get a similar boost, both at the box
office and on store shelves, with "Star Wars: The Force Awakens,"
which will be released Dec. 18. Disney is planning to put new Star
Wars merchandise on sale Sept. 4.
For the period ended June 27, Disney reported a profit of $2.48
billion, or $1.45 a share, up from $2.25 billion, or $1.28 a share,
a year earlier.
Revenue increased 5% to $13.1 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.42 and revenue of $13.23 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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