- Strong Financial Performance: Disney’s adjusted EPS for the fourth quarter was $1.14, surpassing the estimate of $1.10 and significantly above last year’s 82 cents.
- Revenue Growth: Total revenue reached $22.57 billion, marking a 6.3% increase from the previous year and exceeding the estimate of $22.47 billion.
- Entertainment Segment Surge: Entertainment revenue soared to $10.83 billion, a 14% rise from the previous year, beating the $10.66 billion expectation.
- Sports Revenue Stability: Sports revenue was slightly ahead compared to last year at $3.91 billion, close to the estimate of $3.95 billion.
- Experiences Contribution: Experience revenues achieved $8.24 billion, which is a 1% increase year-over-year, aligning closely with the $8.2 billion estimate.
- Total Operating Income: The total segment operating income was $3.66 billion, up 23% year-over-year, but slightly below the estimated $3.71 billion.
- Entertainment Operating Performance: This sector delivered an operating income of $1.07 billion, a substantial improvement from $236 million last year, although shy of the $1.16 billion forecast.
- Mixed Results in Sports and Experiences: Sports operating income decreased by 5.3% year-over-year to $929 million, surpassing the estimate of $904.4 million. Experiences operating income dropped by 5.7% to $1.66 billion, meeting expectations.
- Subscriber Growth: Disney+ Core subscribers reached 122.7 million, above the estimate of 119.85 million. Disney+ Hotstar and Hulu also saw subscriber numbers surpass estimates.
- ARPU Observations: Disney+ Core’s ARPU was slightly below the estimate at $7.30, while Disney+ Hotstar and Hulu’s ARPU metrics also fell short of expectations.
- Future Growth Outlook: Disney forecasts high-single-digit adjusted EPS growth in 2024, with expectations for double-digit growth in cash from operations by 2026 and continuing in 2027.
- Capital Investment and Shareholder Returns: The company plans approximately $8 billion in CapEx and targets $3 billion in buybacks.
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The Walt Disney Co on Smartkarma
Several independent analysts on Smartkarma, such as Value Investors Club, Value Punks, and Baptista Research, have been closely covering The Walt Disney Co. These analysts have provided insights on various aspects of Disney’s business operations and financial performance. For instance, Value Investors Club notes that Disney’s transition to a direct-to-consumer model could drive long-term growth despite the impact of the pandemic on its parks business. With a current share price of $89, there might be an opportunity for investors to benefit from Disney’s evolving business model.
On the other hand, Baptista Research has highlighted Disney’s resilient performance across its diverse business segments, particularly in the streaming services area. They discussed the company’s revenue growth in the third quarter of 2024, which showcased stability in its theme parks segment. Additionally, Baptista Research emphasized Disney’s strategic focus on enhancing its streaming business and evaluating factors that could influence the company’s stock price in the future. Overall, the analyst coverage on Smartkarma provides valuable insights for investors assessing The Walt Disney Co.
A look at The Walt Disney Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 promising long-term outlook. With a strong Growth score of 5, the company is positioned well for future expansion and development. This indicates potential for Disney to continue its growth trajectory in the entertainment industry.
While the Dividend and Resilience scores are moderate at 2 and 3 respectively, the company’s overall Value and Momentum scores of 3 suggest stability and positive market sentiment. With a diverse portfolio spanning media networks, studio entertainment, theme parks, consumer products, and interactive media, Disney’s strong presence in various sectors provides a solid foundation for continued success.
Summary: The Walt Disney Company is an entertainment powerhouse with robust operations in media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media. Known for its production of motion pictures, television programs, musical recordings, books, and magazines, Disney’s wide-reaching influence positions it as a major player 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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