Disney stock jumped again today after first-quarter results showed a 54% increase in profit. According to the Wall Street Journal:
The company’s profit for the quarter surged 54% to $1.3 billion from $844 million a year earlier. The earnings were equivalent to 68 cents a share, up from 44 cents a share. Revenue rose 10% to $10.7 billion.
In after-hours trading, Disney shares rose 3.6% to $42.67.
I trust that at tomorrow night’s Rally for a Fair Contract, there will be plenty of picket signs arguing for sharing the wealth with the workers who created it. As the LA Times points out, these profits come at least in part from cost-cutting, not entirely new revenue generation:
Aggressive cost-cutting produced dividends for Walt Disney Co.‘s movie studio, as its operating income jumped more than 50% on moderate revenue growth for the quarter ended Jan. 1.
I’m glad the company’s healthy. I hope it shares the wealth with its workers, not only its shareholders.
Not like I’m bitter about the state of the economy, or anything. (And remember folks, I’m an honest-to-God business school student, so I’m not unfamiliar with how our system works or unsympathetic to the need to show profits even in lean times.)