Discussion Board Forum 1 – Net Advantage
Disney (Walt) Co
D. Scott Davis
BUSI 530 B08
Disney Company which is also known as the Walt Disney Company, "together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media" (The Walt Disney Company, 2012). During the company's financial year (FY) which ended September 2012, revenue increased 3.4% over FY2011 to approximately $42.278 billion. The operating profit for FY2012 was just over $9 billion, an increase of 15.4%. Finally, the net profit was approximately $5.682 billion, an increase of 18.2% (Marketline, 2013).
During the most recent recession, consumer spending has tightened. Unemployment reached a peak of 10% in October of 2009 and is still at ...view middle of the document...
As the economy continues to rise out of the recession, Disney is expected to continue the upward trend in profits. The recent acquisition of the Lucas film company and the planned release of new movies in the massively popular and profitable Star Wars series should boost profits. The additional movie franchises of Iron Man and The Avengers have both proven highly profitable as well bringing Disney over $2.5 billion combined. The planned release of a second Avengers movie should bring in similar profit. While the economy recovers, spending on "big ticket" items may be stagnant. However, based on ticket sales at movies and theme parks, additional spending on Disney merchandise, and the profit from the companies media holdings, people on Main Street are still feeling the Disney magic. So are the folks on Wall Street. According to the International Business Times, "Out of 32 analysts polled on Thomson Reuters, 8 rated Disney stock a "strong buy." Another 14 rated it "buy" and 10 rated it "hold" (International Business Times, 2013). For investors, they can combine their affinity for Disney movies and parks and the adage to "buy what you know". That way, they own a piece of the company and directly contribute to helping their investment profit.
Company Profile: The Walt Disney Company. (July 31, 2013). Marketline.com, 3. Retrieved from http://web.ebscohost.com.ezproxy.liberty.edu:2048/bsi/pdfviewer/pdfviewer? vid=4&sid=21a9357d-9cde-46b2-b8ae-8bb73501ba17%40sessionmgr112&hid=117 Disney Earnings Beat Despite Economy. (Feb, 2012). Reuters, http://www.reuters.com/article/ 2012/02/08/us-disney-idUSTRE8161TE20120208
Labor Force Statistics from the Current Population Survey. (July, 2013). U.S. Department of Labor, Bureau of Labor Statistics, http://data.bls.gov/cgi-bin/surveymost
Zara, C., (Aug 8, 2013). Walt Disney Company (DIS) Q3 Earnings Preview 2013: Slightly Higher Profits On ‘Avengers’ Hangover, International Business Times, http://www.ibtimes.com/walt-disney-company-dis-q3-earnings-preview-2013-slightly- higher-profits-avengers-hangover-1371385