Consumer Discretionary

Walt Disney Still Expects to Reach Profitability at Combined Streaming Businesses in 4Q of FY24.

Walt Disney Q1 Hulu Paid Subscribers at 49.7 Million Vs Visible Alpha Analyst Consensus of 49.3 Million.

Walt Disney (NYSE:DIS) reported quarterly earnings of $1.22 per share which beat the analyst consensus estimate of $0.99 by 23.23 percent. The company reported quarterly sales of $23.50 billion which missed the analyst consensus estimate of $23.64 billion by 0.60 percent. This is a 0.05 percent decrease over sales of $23.51 billion the same period last year.

Walt Disney (DIS) reported fiscal Q1 non-GAAP earnings late Wednesday of $1.22 per diluted share, up from $0.99 a year earlier. Analysts polled by Capital IQ expected $1.04. Revenue for the quarter ended Dec. 30 was $23.55 billion compared with $23.51 billion a year earlier. Analysts surveyed by Capital IQ expected $23.77 billion. The company said it expects fiscal 2024 non-GAAP EPS of about $4.60, up at least 20% from the previous year. Analysts polled by Capital IQ expect $4.34. Disney said it is targeting $3 billion worth of share repurchases in fiscal 2024 under a new buyback program. Additionally, the company declared a cash dividend of $0.45 a share, 50% higher than the last dividend paid in January, payable on July 25 to shareholders of record on July 8. Disney shares rose more than 7% in recent Wednesday after-hours trading.

The following is a summary of the The Walt Disney Company (DIS) Q1 2024 Earnings Call Transcript: Financial Performance: Disney reported an increase in diluted earnings per share year-over-year by 23% to $1.22, and segment operating margin improved by 350 basis points due to strong pricing and cost reductions. The company saw segment operating income growth of 27% and a 23% rise in adjusted earnings per share from the previous year. The entertainment streaming operating income notably increased by 86%, projecting profitability by the end of fiscal 2024. Disney posted all-time highs in experiences business revenue, operating income, and operating margin. Disney plans to invest approximately $60 billion into the business over the upcoming 10 years, expecting to generate attractive returns. Disney’s board has approved the initiation of a $3 billion stock buyback program in 2024. Business Progress: Notable growth in ESPN’s digital sports platform strengthened by a joint venture

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think the magic is back with greater focus and execution on all businesses. We raise our target by $15 to $120 using a forward TEV/EBITDA of 12.1x our FY 24 (Sep.) EBITDA estimate, a premium to the peer group average of 11.0x. We raise our FY 24 EPS view by $0.20 to $4.70 and keep 2025’s at $5.50, both above consensus. The Walt Disney Company (NYSE:DIS) posted Q1 FY 24 adj. EPS of $1.22, an $0.18 consensus beat. DIS made significant progress in reducing costs and capital spending leading to $886M in Q1 free cash flow. Experience (Parks and Cruise Lines) realized +7% Y/Y revenue growth and +8% operating income growth with international parks fully recovered and cruise line strength. Linear Networks (pay TV and broadcast)

Walt Disney is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Late Wednesday, the entertainment giant’s fiscal first-quarter earnings beat market expectations, with a 23% increase in adjusted earnings to $1.22 per share, but revenue growth slowed for the third consecutive quarter, by less than 1% to $23.55 billion. Disney also provided guidance for the 2024 fiscal year that is well over Wall Street estimates, and said it’s boosting its semi-annual dividend by 50%, while starting a new $3 billion stock-buyback plan. Disney also said it will invest $1.5 billion in Epic Games and plans to stream pop star Taylor Swift’s concert movie in March. Dow Jones & Co. owns Factiva.

Walt Disney’s (DIS) top- and bottom-line trends indicate continued growth in adjusted earnings per share of more than 20% in fiscal year 2025 and beyond, Morgan Stanley said in a note Thursday. The investment bank said Disney’s stronger-than-expected fiscal Q1 results, outlook for lower-than-expected direct-to-consumer segment losses in fiscal Q2, and $3 billion share repurchase program suggest an upward revision to its adjusted EPS growth forecast of $4.60 for fiscal year 2024. “The earnings mix continues to shift towards higher multiple earnings led by Experiences and Streaming [segments],” Morgan Stanley said.”Continued outperformance in Parks and Streaming can help push shares towards our $135 bull case.” Morgan Stanley reiterated its overweight rating on the stock with a price target of $110. Disney shares climbed 12% in recent Thursday trading, topping Morgan Stanley’s price target.