- Disney’s adjusted EPS for 2Q exceeded estimates, reporting $1.21 versus the expected $1.12 year over year.
- Disney+ subscribers were slightly lower than expected, with 153.6 million versus the estimated 155.66 million.
- Total revenue was $22.08 billion, only a slight increase of 1.2% from the previous year, and closely matched the estimate of $22.1 billion.
- Entertainment revenue ended up lower than expected at $9.80 billion against the estimated $10.31 billion.
- Direct-to-Consumer (DTC) revenue matched estimates exactly at $5.64 billion.
- Sports revenue was slightly lower than expected at $4.31 billion versus the estimated $4.33 billion.
- The Experiences revenue exceeded the estimates, reporting $8.39 billion against the estimated $8.18 billion.
- Total segment operating income was $3.85 billion, a growth of 17% year over year, and notably higher than the estimated $3.51 billion.
- Diluted EPS decreased due to goodwill impairments in the quarter, but this was partially offset by higher operating income at Entertainment and Experiences.
- The full-year growth earnings per share guidance has been increased to 25% up from 20%.
- The company is expected to generate $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year.
- Disney+ Hotstar is expected to show softer Entertainment DTC results in Q3, but the combined streaming businesses are expected to be profitable in 4Q.
- Disney+ Core subscribers increased by more than 6 million in 2Q, and Disney+ Core ARPU increased sequentially by 44 cents.
- Company CEO indicated that their results were largely driven by their Experiences segment and streaming business, and that the entertainment streaming was profitable for the quarter. He also stressed that they are on track to achieve profitability in their combined streaming businesses in Q4.
- The company recorded charges of $2.05b due to goodwill impairments related to Star India and entertainment linear networks.
- Total Hulu subscribers were higher than estimated, reporting 50.2 million versus the expected 49.78 million.
The Walt Disney Co on Smartkarma
Analysts on Smartkarma are closely covering The Walt Disney Co, providing valuable insights for investors. Baptista Research delves into the company’s strong performance in the first quarter of 2024, highlighting CEO Bob Iger and CFO Hugh Johnston’s strategic focus on ESPN’s digital transformation, streaming profitability, film studios, and growth in parks and experiences. Using a Discounted Cash Flow method, Baptista Research aims to assess key factors influencing the company’s future stock price.
Meanwhile, Value Investing anticipates Disney to gain ground on Netflix based on Q1 earnings, likening the market competition to a racetrack where Disney is poised to accelerate past its competitor. Similarly, Value Punks reflects on Disney’s rollercoaster stock price journey amid pandemic challenges in its Parks and Resorts division, exploring factors such as studio setbacks, media operations decline, and the impact of Big Tech’s foray into sports media.
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
According to Smartkarma Smart Scores, The Walt Disney Co seems to have a promising long-term outlook. With high scores in Growth and Momentum, the company appears positioned for strong future performance in terms of expansion and market trend. Additionally, scoring well in Resilience suggests that The Walt Disney Co has the capacity to withstand economic challenges. While Value and Dividend scores are not as high, the company’s strengths in Growth and Momentum could drive its overall success in the entertainment industry.
The Walt Disney Company is an entertainment powerhouse with operations across various sectors including media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media. Known for producing a wide range of entertainment content such as movies, TV shows, and merchandise, Disney holds a significant presence in the global entertainment market. With a focus on innovation and creativity, The Walt Disney Company continues to captivate audiences worldwide through its diverse portfolio of offerings.
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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