The Disney Quarter Report is in. Read the news analysis here.

[Mop]

CBS MarketWatch: Disney below forecasts; warns on '02

Associated Press: Disney Earnings Drop 68 Percent

Reuters: Disney sees Q1 Walt Disney World attendance off

 

[DVCDAVE]

Eisner is way beyond his welcome, time for him and his team to go !!!

 

[Peter Pirate]

Almost anybody who spoke today (analysts) about Disney made comment about how the 9/11 tragedy hit Disney far harder than most of corporate America and particularily others in the entertainment sector. Other companies are not nearly as tied to sectors that were devestated by 9/11 (loss of Park revenue, hotel revenue & loss of TV ad revenue). This particular picture, while apparantely bleak, dosen't reflect any particular wrongdoing on Eisner's part, in fact it would not have mattered who was at the helm, the results would have been the same.

Realize, I am not taking issue (in this thread) with mistakes Eisner has made (not investing in the Parks, the animation failures, the "blockbuster" philosophy & so on) only that this particular mess cannot logically be blamed on Eisner.

Lastly, I read a lot of comments that talked about the Disney "trunaround" in terms of when and not if, linking it (the turnaround) to the economy...Which seemingly indicates confidence in Eisner...

 

[hopemax]

I have a bad habit...I do math

So WDW attendance for the quarter was down 25%. 92 days in the quarter(July 1 - Sept 30). 72 days without 9/11 effects, 20 days of dealing with 9/11. If I assume that since 9/11 attendance has been cut in half, the average of the other 72 days would be down 18%. If after 9/11 attendance has been 1/3 of normal, the other 72 days attendance still be down 13%

That's still means they were probably down more than the "about 8%" that we heard all summer.

Eisner's fault or not? Well, from my perspective...if I choose not to get a flu shot because I hadn't gotten sick the last 3 years and then end up getting the flu, I'm still going to espect to take responsibility for not getting the shot. Like the flu, the economy is always unpredictible. I feel that the Disney Co. could have been better prepared to deal with pre 9/11 economic effects, and that any additional preparation for a potential crisis even though you don't know when it will come (the economy), would make them better prepared for an unforseen crisis. I use the analogy I've seen on the news in the past weeks...any one who has taken precautions for an earthquake (ie a supply of water, food, radio, batteries) is in better shape for handling terror attack than the person who didn't.

But I expect the interpretations to go along the lines of our little vehicle caravans.

I expect Disney's current management recovery plan to lead to "below the curve" results, but believe me when I say nothing would make me happier than to be proven wrong.

 

[DVCDAVE]

Let's look at the facts, and as a shareholder I am extrememly concerned. Anyone who bought Disney stock after October of 1995 has not made one cent. In fact they LOST money. The obvious conclusion is that the Walt Disney company has been on a slide, not only during the last quarter, but for the last SIX years. During this time shareholders have gotten a NEGATIVE return on their investment, bondholders have seen the credit rating of their holdings downgraded, yet Eisner has walked away with a treasure chest of cash. Seems obviously clear to me that no one has made any money but Eisner.

It is now time for Eisner to accept responsibility for his incompetance as CEO of Disney for the good of the shareholder. Disney hasn't had just a bad quarter that he can blame some terrorests on, he has had a horrible 6 year run. Shareholders besides from suffering a negative return on investment, they have also missed a 100% rise in the Dow Averages (which Disney is a member of), in spite of the 20 month Bear Market that we have been in. The facts are clear, Eisner's last six years have been a financial disaster for the Walt Disney Company, any opinion to the contrary is simply ignoring the facts. Plain and Simple.

 

[Bob O]

I couldnt agree with dvcdave more!!! When you are in charge you have to take responsibility for whatever happens. If the economy was going gangbusters and profits were way up you can be sure eisner would take credit for that. Most of the profits Eisner has made while at the helm was profitting from the companies vaults/past investments. They had a streak of good animated movies but that has been awhile and how long can you live on past performance?? Apparently a long time when you can stack the board with your cronies.