Walt Disney Co.’s net income soared 40 percent in its fiscal third quarter, largely from gains from ESPN and its studio unit’s hit film “Toy Story 3”.

After markets closed Tuesday, the Burbank entertainment giant reported net income of $1.33 billion (67 cents per share) for the quarter ended July 3, compared with $954 million (51 cents) a year earlier. Revenue rose 16 percent to $10 billion.

Excluding one-time items, adjusted earnings were 67 cents per share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share earnings of 58 cents on revenue of $9.38 billion.

Revenue at its media networks rose 19 percent to $4.7 billion, with operating income up 43 percent to $1.9 billion. The big contributor was ESPN, which reported it was able to sell more advertising at higher rates.

Revenue from the studio entertainment division rose 30 percent to $1.6 billion, with an operating profit of $123 million. In addition to the latest installment in the “Toy Story” franchise, the unit also gained from “Iron Man 2” and the 3-D film “Alice in Wonderland.”

“Our performance underscores the value of sticking to a smart strategy even in tough times, of investing in the right people and of focusing relentlessly on quality and innovation to drive growth in shareholder value,” said Chief Executive Officer Robert Iger in a statement.

Income from Disney’s U.S. theme parks was down due to higher costs and lower attendance. Disney blamed unfavorable timing of the Easter holiday, which hurt attendance, but noted that guests spent more per person.

Shares closed up 13 cents, or less than a percent, to $35.29 on the New York Stock Exchange prior to the announcement. Shares rose 1.3 percent in after-hours trading.