ABC Daytime soap opera fans are not going to be happy about this, that is, unless of course they own Disney stock.
Disney stocks have surged 6 percent today, after Wall Street raves about the media giant’s fiscal fourth quarter profits.
According to a breaking story in THR, Disney shares rose $2.06 on Friday to $36.70.
A Wall Street analyst, Michael Nathanson of Nomura Equity Research, sweetened the pot even more when he upped his price target on Disney stock by an impressive $5 a share on Friday to $43.
Another analyst, Michael Morris of Davenport & Co., increased his target on Disney by $1 on Friday to $39 a share.
“The operating results were solid where it mattered, as cable networks, parks and resorts and broadcast results came in above expectations,” said Anthony DiClemente of Barclays Capital. The analyst left his $44 price target unchanged.
Most of the profits were generated by Disney theme parks and ESPN assets.
Still, soap fans who got the biggest bummer news of their lives when ABC announced the cancellation of All My Children and One Life to Live earlier this year, mounted campaigns to hit Disney where it hurts most – in the pocketbook. They boycotted advertisers, protested at the spring upfronts, and tuned out of network programming hoping to cause a ratings decline. These efforts may have been successful for fiscal quarters two and three, but did not appear to have any impact on fiscal quarter four.
“After two unspectacular quarters, Disney rewarded shareholders who kept the faith,” Nathanson said.
Disney said Thursday that its quarterly revenue rose 7 percent to $10.43 billion and net income soared 30 percent to $1.25 billion.
But they couldn’t afford to keep soap operas alive on daytime television.
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