The Walt Disney Co. ($DIS) Earnings (Q2 FY22)

 The Walt Disney Co. ($DIS) Earnings and Opinion:


The Walt Disney Co. is a company in the Communication Services sector and operates in the Entertainment industry. The company operates as an entertainment company worldwide and has many subsidiaries to go along with it. The Walt Disney Co. was founded in 1923 and is currently headquartered in Burbank, California. The company was first traded on the stock market in 1957.

The Walt Disney Co. EPS and Revenue (Q2 FY22):

  • EPS of $1.08 missing expectations of $1.19
  • Revenue of $19.25B missing expectations of $20.04B
The Walt Disney Co. Q2 Financial Highlights:
  • Revenues grew 23% Y/Y
  • Free cash flow of $686M, up 10% Y/Y
  • EPS was up 37% Y/Y
  • Disney + subscriptions up 33%
  • ESPN + subscriptions up 62%
Opinion:
Disney stock is currently trading lower after reporting earnings this afternoon. The company missed expectations in both the revenue and EPS categories. However, they crushed expectations in subscriber counts and grew by significant amounts. The stock was trading higher right after the earnings report came out, but as investors digested the information more, they looked at it as a bad quarter compared to Wall Street estimates. The company was hit very hard by the pandemic, forcing them to shut down their parks, which caused them to be at abnormal levels with revenue and financials. I personally think they have some solid subsidiaries, and they are starting to take over some big ones in the streaming industry. Disney is a company that is here to stay for a while, for heavens sake, they have some of the highest Goodwill levels I have seen. Their intangible assets are worth so much and it is hard to see this company struggle, but the business model favors young children which will never go away. The stock is currently down around 42% over a one year period and down around 30% on a 3 month basis. Most people fear when stocks go down and panic sell, but that should not be the case, especially with this stock. Disney has so much growth in pretty much every category they operate in, and when covid dwindles and everything is fully normal again, the company will be back to generating normal revenues on top of their growing streaming revenues. The P/S ratio is down to 2.63 and the P/E ratio is around 51.72. The P/E ratio is just due to the fact of the lackluster earnings coming through over the past two years. This valuation will go back down once the normal financials come back to play. For now though, this company is a screaming buy right now. They are trading at a major discount and the upside is endless with them. I can also see them implementing a dividend again once the company fully recovers financially. I would favor this stock heavily in this huge sell-off. 

*Information from Disney, Google, Yahoo Finance, CMLVIZ

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more