- Disney reported an adjusted EPS of $1.76, exceeding the estimated $1.42 and the previous year’s $1.22.
- Revenue reached $24.69 billion, a 4.8% increase year-over-year, beating the estimate of $24.57 billion.
- Entertainment revenue grew by 8.9% to $10.87 billion, slightly missing the $11 billion estimate.
- Sports revenue was $4.85 billion, a small 0.3% increase, surpassing the $4.7 billion estimate.
- Experiences revenue increased by 3.1% to $9.42 billion, above the estimate of $9.3 billion.
- Eliminations revenue decreased by 12% to -$447 million, with the estimate being -$391.5 million.
- Total segment operating income was $5.06 billion, marking a substantial 31% rise year-over-year, outperforming the $4.28 billion estimate.
- Entertainment operating income soared by 95% to $1.70 billion, surpassing the $1.45 billion estimate.
- Sports operating income was $247 million compared to a loss of $103 million the previous year.
- Experiences operating income slightly increased by 0.2% to $3.11 billion, exceeding the estimate of $2.99 billion.
- Disney+ subscribers totaled 124.6 million, slightly down from 125.3 million quarter-over-quarter.
- Domestic Disney+ subscribers reached 56.8 million, above the estimate of 55.67 million.
- International Disney+ subscribers were 67.8 million, surpassing the estimate of 63.77 million.
- Total Hulu subscribers amounted to 53.6 million, above the estimate of 52.34 million.
- Hulu SVOD only subscribers were 49 million, beating the estimate of 47.26 million.
- Hulu Live TV + SVOD subscribers stood at 4.6 million, slightly below the estimate of 4.63 million.
- Hulu SVOD only ARPU was $12.52, under the estimated $12.84.
- Hulu Live TV + SVOD ARPU was $99.22, exceeding the estimate of $97.98.
- In the second quarter, Disney anticipates a modest decline in Disney+ subscribers quarter-over-quarter.
- Sports operating income is expected to be negatively impacted by $100 million due to college sports and additional NFL games, and $50 million from exiting Venu Sports JV.
- Disney has scrapped the Venu Sports streaming plan with Fox and Warner Bros.
- There are anticipated Disney Cruise Line pre-opening expenses of about $40 million within the experiences segment.
- For the year, Disney expects high-single-digit adjusted EPS growth, around 8.1%.
- Cash flow from operations is projected to be approximately $15 billion, close to the $15.09 billion estimate.
- Entertainment operating income growth is forecasted to be in the double-digit percentage range, estimated at 15.7%.
- Entertainment direct-to-consumer operating income is expected to be around $875 million.
- Sports operating income growth is projected at 13%, slightly above the 11.8% estimate.
- Experiences operating income is anticipated to grow between 6% and 8%, near the 6.1% estimate.
- Disney projects about $200 million in pre-opening expenses for the Disney Cruise Line.
- An equity loss of approximately $300 million is expected due to the purchase accounting of Star India’s deconsolidation.
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The Walt Disney Co on Smartkarma
Analyst coverage on The Walt Disney Co on Smartkarma showcases a mix of bullish sentiments and insightful observations. Baptista Research delves into Disney’s strategic moves, highlighting the transformative potential of the Hulu+FuboTV merger in the streaming space. Their analysis underscores Disney’s aim for substantial growth and market influence through innovative initiatives.
In a different light, Value Investors Club emphasizes Disney’s resilience amidst pandemic challenges, noting strong pre-tax earnings and the company’s transition towards a direct-to-consumer model for long-term profitability. This balanced view aligns with the broader investment perspective on Disney’s evolving business model and long-term potential for investors at the current share price of $89. with HTML tags for paragraphs.
A look at The Walt Disney Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, The Walt Disney Company seems to have a positive long-term outlook. With a strong momentum score of 5, the company appears to be performing well in terms of market trends and investor sentiment. Additionally, a growth score of 4 indicates that The Walt Disney Co is positioned for future expansion and development in its various business segments. These factors suggest that the company may continue to see growth and success in the foreseeable future.
In addition, The Walt Disney Company has decent scores across value, dividend, and resilience factors, with scores of 3 for value and resilience, and 2 for dividend. This indicates that the company is considered to have moderate value, stability, and potential for dividend payouts. Overall, The Walt Disney Co‘s diversified operations in media networks, studio entertainment, theme parks, consumer products, and interactive media provide a solid foundation for continued success in the entertainment industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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