Walt Disney’s (DIS) most recent earning results were considered disappointing by most investors, and as a result the share price dropped by more than 3.25%; with the sore point being the revenue and operating income figures generated by the cable network division – both largely below any financial analyst’s estimates.
But luckily Disney’s business consists not only of the cable network division, but rather a multitude of different business activities ranging from motion pictures, theme parks and musical recordings to books and magazines. And we like DIS because the company generates solid free cash flows and has an excellent track-record in managing its theme parks in a rational and profitable way under any economic conditions.
The company’s cash returns to investors are regular and the management has confirmed that it is planning a share buy-back in 2014 to the value of USD 6-8 billion.