The Walt Disney Company reported another stellar quarter, with earnings of 58 cents per share, blowing away Wall Street's consensus earnings estimate of 51 cents per share, while revenue came in at $8.71 billion, also beating analyst expectations, and up 10 percent over last year.
Most impressive, CEO Bob Iger proved that the company,despite its exposure to the U.S. economy, is incredibly resilient.In Wednesday's trading, Disney stock is up on the news (at this positing).
Investors were concerned the slowdown in consumer spending could really hurt Disney's Parks and Resorts business. But the division came through with 11 percent revenue and 33 percent operating income growth. And even better, looking forward to the crucial summer season, room bookings haven't dropped off.
So how did the parks and resorts stay so strong? Well internationally, the weak dollar certainly helped, and Disneyland Paris finally started taking off. The U.S. parks also benefited from the weak dollar, which drove foreign tourists to stay at the parks and spend big. But what's most surprising is that U.S. visitors continued to spend at the parks, no matter how tight their pocketbooks.
I got a chance to sit down with Iger in an exclusive interview to discuss the numbers and his strategy. There are two video clips posted with him.
Iger attributed this to the parks shifting more of their hotels to a more moderate price-range, giving families the option of an affordable getaway. Lower priced rooms and the benefit of perks for staying at hotels on the park property has boosted Disney's share of tourists hotel spend. Bottom line: Americans may not be spending on travel overseas, but they're not giving up their annual family vacation, and Disneyland seems to offer a more accessible option here than ever.