Disney nears CEO pick as it posts rosy earnings

A record fiscal quarter for Walt Disney Co.’s theme parks division was dampened slightly by a streaming acquisition anda protracted fight with YouTube, the Burbank media and entertainment giant reported Monday.

- By SAMANTHA MASUNAGA

Disney recorded overall revenue of about $26 billion in the three-month period that ended Dec. 27, up 5% compared with the previous year. Disney’s income before taxes totaled nearly $3.7 billion, a 1% jump from the same period last year. Earnings per share were $1.34 for the quarter, down from $1.40.

The company beat Wall Street estimates for revenue and earnings per share, largely propelled by its theme parks and streaming businesses. But investors weren't convinced; shares of Disney closed down 7.4% to $104.45 on Monday.

“I'm incredibly proud of all that we've accomplished over the past three years to set Disney on the path of continued growth,” Disney Chief Executive Bob Iger said during a Monday morning call with analysts. “I'm inspired and energized by the opportunities ahead of this wonderful company.”

The company’s future isa major topic of conversation within the industry, as Disney’s board of directors could name Iger’s successor as early as this week, with theme parks chief Josh D’Amaro considered the leading contender.

D’Amaro is a nearly 30-year veteran ofthe company, who began his career at Anaheim’s Disneyland Resort. During his tenure, Disney has expanded its film franchises into the parks, including areas themed to “Star Wars,” Marvel’s “Avengers” and “Frozen.”