It reduced streaming operating losses to $138 million in the quarter, a dramatic improvement over a year ago, when it lost nearly $1 billion. The average monthly revenue per Disney+ user, outside of India, rose 14 cents. Disney reported a 23% increase in adjusted earnings to $1.22 per share, its second straight increase after four consecutive quarters of declines. Revenue growth slowed for the third quarter in a row, inching up less than 1% to $23.55 billion. Walt Disney Co. reported Q1 profit that fell substantially short of analysts’ expectations which sent the stock price to a 10% decline in after-hours trading. Putting Disney’s stock price in the $15 territory, a long way from a previous all time stock price high around $43.
Quarterly revenue was comparable to a year ago, at $23.5 billion, but short of projections of $23.6 billion. Shares are down less than 1% so far this year, having fallen from their 2023 high from late February. WBD stock rose 3% early Thursday to claw back some of its Wednesday losses.
- Parks include the flagship Walt Disney World in Florida, Disneyland Paris, and Hong Kong Disneyland Resort.
- The stock climbed in six of the prior seven trading days leading up to earnings.
- The company is based in Walt Disney Studios, Burbank, California, and is best known for its work in animation and for creating the character Mickey Mouse.
- Disney initially opted not to join the many other large companies opposing the measure.
Iger’s contract has been renewed through 2026, which gives investors some breathing room. But he is going to leave again at some point, which could put Disney back in flux. Perhaps he will set things up differently this time to position whoever follows him for better success, and perhaps the market will look different. Previous CEO Bob Chapek came onto the scene with plenty of volatility. If the economy is stronger, Disney+ is sailing, and parks are growing, any CEO will have an easier time steering the Disney ship.
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During that time, he demonstrated a keen understanding of the company and the moves that would be necessary to succeed. He presided over Disney when it acquired Lucasfilm, maker of the Star Wars franchise; Marvel Studios, which has created the most successful film franchise in the past 100 years; 20th Century Fox; and animation studio Pixar. He expanded Disney’s parks internationally and set the company up for the rise of streaming. Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech and money news that matters to you.
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Entertainment revenue fell 7% to $9.98 billion, driven by a 12% decline in linear network revenue and a 38% drop in content sales and licensing. Direct-to-consumer revenue jumped 15% to nearly $5.5 billion for the quarter. 22 Wall Street equities research analysts have issued «buy,» «hold,» and «sell» ratings for Walt Disney in the last year. There are currently 1 sell rating, 3 hold ratings and 18 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should «moderate buy» DIS shares.
Latest news about Walt Disney Company (The)
As of Feb. 2, 2022, there were 1,820,633,408 common shares of Disney stock outstanding. Disney on Feb. 1 urged shareholders to only vote for its 12 nominees for the board, and reject nominees from Blackwells and Peltz’s Trian Group. Trian in December nominated Peltz and former Disney CFO Jay Rasulo to the board and on Jan. 18 set a target for reaching margins of 15%-20% by 2027, using Netflix (NFLX) as a guide. The Dow Jones behemoth is in the middle of another proxy battle with Nelson Peltz’s Trian Fund Management and Blackwells Capital for influence over the company’s board of directors.
About Walt Disney Stock (NYSE:DIS)
Judging by the 8% move lower in Disney shares premarket Thursday, investors seem like they aren’t sold yet. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.
One of Disney’s big announcements this year was a $60 billion park investment. The parks segment was Disney’s largest segment for many years, and it’s a major part of the Disney entertainment cycle, offering an unparalleled entertainment experience for fans. It typically generates high and growing revenue, and it’s a crucial piece of how Disney monetizes its content and franchises.
Earnings beat FactSet expectations of 71 cents per share but sales growth fell short of expectations of $21.37 billion. In 1967, Florida legislators created a special taxing district called the Reedy Creek Improvement District, for the site of the Disney World amusement park. The status allows Disney to provide typical municipal services like water and sewers, roads, and fire protection. Reedy Creek covers 40 squares miles, maintains 134 miles of roads and handles 60,000 tons of waste annually. Republican legislators who passed a bill repealing the district effective June 1, 2023 said details of the change would be worked out and legislated over the next year. DIS stock is up 8.5% as of Thursday morning with some 7 million shares on the move.
Higher attendance at those parks helped offset a drop at Walt Disney World in Orlando, Florida. The unit reported revenue of $9.1 billion and operating income of $3.1 billion. The service will have a new brand and independent management team, according to Disney’s release late Tuesday.
Consumers love streaming content, but even the biggest of media companies are still struggling to make that trend work financially. To go along with this, Disney also updated its guidance for the forex related courses full year of 2024. The company now expects adjusted EPS for the year to come in at $4.60 per share. That’s looking good next to Wall Street’s 2024 adjusted EPS estimate of $4.28 per share.
The Walt Disney Company is the world’s second-largest entertainment company by revenue and market cap. It is built on the work of Walt Disney, a revolutionary entertainer and cartoon innovator, and is now a multinational conglomerate of entertainment venues, channels, and brands. The company was founded in 1923 as the Disney Brothers Studio and operated under several other names before being branded as The Walt Disney Company in 1986. Disney’s stock price steadily grew during these stock split periods finally going past $25 in 1997, there was slight tumultuous period over the next few years but Disney’s stock price was most hit in the early part of the next decade. Disney stock has been a part of six stock splits since the IPO,The first post IPO stock split happened in 1967 which was a 2 for 1 stock split.
Each entity will own one-third of the joint venture and have equal board representation, while also licensing their sports content on a nonexclusive basis. Disney expects to generate around $8 billion in free cash flow for the year. The company sees 2024 adjusted earnings increasing at least 20% to $4.60 per share, up from $3.76 per share last year. During the company conference call, management said Disney had taken a $1.5 billion stake in «Fornite» developer Epic Games, pending regulatory approval. Epic and Disney previously collaborated on in-game cosmetics and events that featured characters from Marvel, Star Wars, Indiana Jones and more.
Overall direct-to-consumer revenue rose 12% to $5.04 billion. Many Disney parks and resorts around the world are open and serving customers following a number of closures throughout the early part of the COVID-19 pandemic. Face masks are strongly recommended for all indoor settings and required for all guests ages 2 and up on Disney shuttles and at first aid stations.
There were two more 2 for 1 stock splits shortly after in 1977 and 1973. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. The 90s brought two more stock splits, one 4 for 1 in 1992 and then a 3 for 1 stock split in the summer of 1998. All these stock splits work out as 1 share purchased https://g-markets.net/ at IPO being the worth 384 shares today. For the time being, investors can continue to feel confident in Iger’s leadership and Disney’s expanding opportunities. Management is targeting a 20% increase in EPS in 2024, higher than Wall Steet’s consensus of $4.28, and if Disney+ turns to profitability, Disney stock should soar this year.
FactSet analysts expected flat year-over-year adjusted earnings at 99 cents per share on $23.7 billion in revenue. The Disney Parks, Experiences, and Products segment includes a network of theme parks, resorts, and cruises under the Walt Disney World and Disneyland banners. Parks include the flagship Walt Disney World in Florida, Disneyland Paris, and Hong Kong Disneyland Resort. Guests can also enjoy themed vacations under the National Geographic banner and others.
