- Disney’s adjusted earnings per share (EPS) for Q3 stood at $1.39, surpassing the estimate of $1.19 and significantly higher than last year’s $1.03.
- Revenue for Q3 reached $23.16 billion, a 3.7% increase year-over-year, exceeding the estimate of $23.08 billion.
- Entertainment revenue was $10.58 billion, up 4.5% year-over-year, beating the estimate of $10.37 billion.
- Direct-to-Consumer revenue came in at $5.81 billion, slightly above the estimate of $5.73 billion.
- Sports revenue increased by 5.1% year-over-year to $4.56 billion, higher than the estimated $4.4 billion.
- Experiences revenue was $8.39 billion, a 2.3% increase year-over-year, but below the estimate of $8.61 billion.
- Total segment operating income increased by 19% year-over-year to $4.23 billion, surpassing the estimate of $3.84 billion.
- Entertainment operating income was $1.20 billion, significantly higher than last year’s $408 million, and above the estimate of $811.3 million.
- Direct-to-Consumer operating loss was just $19 million, much lower than the estimated loss of $141 million.
- Sports operating income was $802 million, a 6.1% decline year-over-year but better than the estimated $757 million.
- Experiences operating income decreased by 3.3% year-over-year to $2.22 billion, slightly below the estimate of $2.34 billion.
- Hulu’s total subscribers grew by 1.8% quarter-over-quarter to 51.1 million, exceeding the estimate of 50.44 million.
- Hulu SVOD average revenue per user (ARPU) rose by 7.5% quarter-over-quarter to $12.73, surpassing the estimate of $12.47.
- Hulu Live TV + SVOD ARPU increased by 1.2% quarter-over-quarter to $96.11, slightly above the estimate of $95.05.
- Disney has raised its guidance for growth in adjusted earnings per share to 30% from the previous 25%.
- The company is on track for improved profitability of its combined streaming businesses in Q4, with both Entertainment DTC and ESPN+ expected to be profitable.
- Disney+ Core subscribers are expected to grow modestly in Q4.
- Profitability in the Content Sales/Licensing and Other segment for Q4 is expected to be similar to Q3; full fiscal year 2024 profitability is anticipated.
- The Experiences segment may see demand moderation in domestic businesses impacting the next few quarters as observed in Q3.
- Disney+ Core subscribers reached 118.3 million, up from 117.6 million quarter-over-quarter.
The Walt Disney Co on Smartkarma
Analysts on Smartkarma are closely covering The Walt Disney Company, with insightful reports from Baptista Research and Value Investing shedding light on the company’s recent performance and future prospects. Baptista Research delves into Disney’s success in the first quarter of 2024, focusing on strategic initiatives led by CEO Bob Iger and CFO Hugh Johnston to transform ESPN into a digital sports leader, boost streaming profitability, revitalize film studios, and drive growth in parks and experiences. The analyst firm evaluates key factors influencing Disney’s stock price and conducts an independent valuation using Discounted Cash Flow (DCF) methodology.
Meanwhile, Value Investing‘s report highlights Disney’s Q1 earnings and its potential to gain market share from Netflix. Positioning Disney as a contender racing to surpass Netflix, the report discusses the favorable landscape for Disney in the US Media sector and how the latest earnings report reinforces this narrative. Value Punks also weigh in on Disney’s journey, pointing out the significant drop in share price despite record results from the parks segment. The report touches upon challenges faced by Disney’s studio business, the decline in legacy media operations, and the impact of Big Tech’s foray into sports media on the company’s stock performance.
A look at The Walt Disney Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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 shows a positive long-term outlook. With high scores for value and growth, the company is positioned well for future success. The Value score of 4 indicates that Disney is considered undervalued, offering potential for investors. Additionally, the Growth score of 4 suggests promising growth prospects for the company in the long run. Although the Dividend and Momentum scores are lower, the overall outlook for Disney remains optimistic.
The Walt Disney Company, known for its diverse operations in media, entertainment, and theme parks, continues to demonstrate resilience even amidst challenges. With a strong presence in media networks, studio entertainment, and consumer products, Disney’s ability to adapt to changing market conditions is reflected in its Resilience score of 3. Despite facing some momentum challenges, Disney’s solid foundation and strategic positioning bode well for its future performance 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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