The entertainment company’s stock slipped in trading after the company inadvertently sent out an e-mail with earnings information.
The Walt Disney Company enjoyed a profitable first quarter of 2005. Net income rose to $698 million USD, a change from last year’s 1st quarter total of $537 million USD.
Despite the increase, Disney investors seemed to be expecting more. The company was not planning to release its earning information until after the 4 pm market close today. But someone accidentally sent out the e-mail containing the earnings info early.
Not wishing to run afoul of the SEC’s Regulation FD, the Fair Disclosure rule, Disney immediately made the information available to the public.
“As we anticipated, last year’s tremendous momentum has continued into 2005, bringing us well on the way toward another year of double-digit earnings growth for our shareholders,” Disney chief executive officer Michael Eisner said in a statement.
Mr. Eisner has previously predicted double digit growth from the company, and Disney seems to be on track to meet that expectation. The company hopes to see that level of growth through at least the next two years.
One boost to earnings came from the Vin Diesel vehicle, “The Pacifier,” which opened at $30 million USD and did $109 million USD domestic gross through May 9.
Another was the DVD release of Pixar’s “The Incredibles,” which was distributed by Disney Home Entertainment. Over 17 million DVD copies of the superhero movie have been sold.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
