Is Disney In Trouble After This Report?

November 9, 2017 by Chris Lange

The Walt Disney Co. (NYSE: DIS) reported its most recent quarterly results after the markets closed on Thursday. The Mouse House said that it had $1.07 in earnings per share (EPS) and $12.78 billion in revenue, versus consensus estimates from Thomson Reuters that called for $1.15 in EPS and $13.34 billion in revenue. The fiscal fourth-quarter from last year had $1.10 in EPS and $13.14 billion in revenue.

During this quarter, the Media Networks segment revenue decreased 3% to $5.5 billion, and segment operating income decreased 12% to $1.5 billion.

Separately, Parks and Resorts revenues increased 6% to $4.7 billion, and segment operating income increased 7% to $746 million. Overall operating income growth for the quarter was due to an increase in international operations, but this was partially offset by a decrease at domestic operations as the result of Hurricane Irma

Studio Entertainment revenues decreased 21% to $1.4 billion and segment operating income decreased $163 million to $218 million.

Consumer Products & Interactive Media revenues decreased 6% to $1.2 billion, and segment operating income decreased 12% to $373 million due to a decrease at its merchandise licensing business.

Disney did not offer any guidance going forward, but there are consensus estimates that are calling for $1.66 in EPS and $15.48 billion in revenue for its fiscal first-quarter.

Bob Iger, Chairman and CEO of Disney, commented:

No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company. We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.

Shares of Disney closed Thursday up 1.6% at $102.78, with a consensus analyst price target of $110.32 and a 52-week range of $94.23 to $116.10. Following the release of the earnings report, the stock was initially down about 3% at $99.75 in the after-hours trading session.

Sponsored: Want to Retire Early? Here’s a Great First Step

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.