Media

What Analysts Are Saying About Disney After Earnings

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Walt Disney Co. (NYSE: DIS) reported its most recent quarterly results after markets closed on Tuesday. This report was not as strong as analysts were expecting, and investors sent shares lower, if only slightly.

24/7 Wall St. has included some highlights from the earnings report, as well as what a few analysts are saying about Disney after the fact.

The Mouse House said that it had $1.50 in earnings per share (EPS) and $13.34 billion in revenue, versus consensus estimates from Thomson Reuters that called for $1.41 in EPS and revenue of $13.45 billion. The fiscal second-quarter from last year reportedly had EPS of $1.36 and $12.97 billion in revenue.

In terms of its business segments the Disney reported:

  • Media Networks revenues for the quarter increased 3% to $5.9 billion and segment operating income decreased 3% to $2.2 billion.
  • Parks and Resorts revenues for the quarter increased 9% to $4.3 billion and segment operating income increased 20% to $750 million.
  • Studio Entertainment revenues for the quarter decreased 1% to $2.0 billion and segment operating income increased 21% to $656 million.
  • Consumer Products & Interactive Media revenues for the quarter decreased 11% to $1.1 billion and segment operating income increased 3% to $367 million.

ESPN has been a big question mark for the company this year, and Disney somewhat addressed it in the report. Cord-cutting and declining advertising have plagued this segment, but management has a somewhat optimistic stance on ESPN. Disney Chairman and CEO Bob Iger noted that there is a rise in smaller digital streaming platforms and those that include ESPN will help increase engagement.

A few analysts weighed in on Disney after the earnings report:

  • Loop Capital reiterated a Hold rating with a $117 price target.
  • BMO Capital Markets reiterated an Underperform rating with a $95 price target.
  • Macquarie reiterated a Buy rating.
  • Piper Jaffray has a Buy rating with a $130 price target.
  • Wells Fargo reiterated a Market Perform rating with a $111 price target.
  • Jefferies reiterated a Hold rating with a $110 price target.
  • Goldman Sachs reiterated a Buy rating with a $134 price target.

Shares of Disney closed out the week at $109.69, with a consensus analyst price target of $118.96 and a 52-week trading range of $90.32 to $116.10.

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