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After Hours Action: Disney

Shares of Disney popped 4% in extended trade after the company reported a profit that blew past Wall Street forecasts, aided by a hefty rise in advertising sales at its ESPN cable sports channels and a strong showing from its parks and resorts division.

All three of Disney's biggest business divisions—media networks, studio entertainment and parks and resorts—turned in higher operating profit for its fiscal first quarter. But media networks stole the show, due in large measure to the performance of ESPN.

Ratings at ESPN were up about 9 percent in prime-time during the last three months of the year thanks to Monday Night Football, college football bowl games, the National Basketball Association and its flagship "SportsCenter" program.

Overall, media networks, which also include ABC and Disney Channels, posted an 11 percent jump in revenue. Profit rose 47 percent.

Looking at the numbers more closely Disney e reported fiscal first-quarter earnings of 68 cents a share excluding one-time items, up from 47 cents a share last year.

Sales came in at $10.7 billion, up from $9.739 billion a year ago.

Wall Street was looking for a profit of 56 cents a share on revenue of $10.5 billion, according to a consensus estimate compiled by Thomson Reuters.

How should you trade it?

This is a phenomenal earnings report, says Joe Terranova. I see no reason that the stock will pullback. If you believe in the recovery, I'd ignore the valuation and stay with it.

I'm bullish too, says Stephen Weiss. The brand just keeps expanding.

Read More:
Walt Disney Earnings Jump, Outstrip Analyst Forecasts

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Trader disclosure: On Feb 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FXI); Seymour owns (TM); Terranova owns (VRTS); Terranova owns (C); Terranova owns (UPL); Terranova owns (GM); Terranova owns (PEP); Terranova owns (LTD); Terranova owns (CVI); Terranova owns (SU); Terranova owns (CNQ); Terranova owns (POT) puts; Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman's firm is short (IJR); Finerman's firm is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman's firm owns (AAPL); Finerman's firm owns (AVP) calls; Finerman owns (BAC); Finerman's firm owns (BAC) leaps; Finerman's firm owns (BBY); Finerman owns (C); Finerman's firm owns (GLW); Finerman owns (GOOG); Finerman owns (HPQ); Finerman's firm owns (HPQ); Finerman's firm owns (IBM); Finerman owns (JPM) ; Finerman's firm owns (JPM) and (JPM) leaps; Finerman's firm owns (MCD); Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman's firm owns (TGT); Finerman's firm owns (WMT); Finerman's firm owns (FCX) puts; Finerman's firm owns (DAI); Weiss owns (AAPL); Weiss owns (FAS); Weiss owns (GLD); Weiss owns (JPM); Weiss owns (HBAN); Weiss owns (BTU); Weiss owns (MEE); Weiss owns (TBT); Weiss owns (UUP); Weiss owns (CSCO); Weiss owns (QCOM); Weiss owns (VZ); Weiss owns (TXN); Weiss owns (MSFT); Weiss owns (FWLT); Weiss owns (SHAW)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
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Virtus Investment Partners Owns More Than 1% Of (WDFC)
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Virtus Investment Partners Owns More Than 1% Of (DPUKF)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (BAC)
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Accounts Managed By Kanundrum Capital Own (DO)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own (JEF)
Accounts Managed By Kanundrum Capital Are Short The Yen


For Barry Ritholtz
Ritholtz has no disclosures

For David Riedel
Riedel has no disclosures

For Eric Noll
Noll has no disclosures

For Scott Nations
Nations has no disclosures

For Amelia Bourdeau
Bourdeau has no disclosures

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CNBC.com with wires.