Disney's Quarter Just Okay

Disney (DIS) reported earnings after the close but the numbers were distorted by an extra week in the current quarter. Therefore, they beat on revenue and earnings but I’m not sure analysts were accounting for the extra week.

Revenues and operating income were strong in their core Cable Networks division which includes ESPN and the Disney Channels. Part of the strength here was due to $128 million more recognition of net deferred revenues from programming commitments than the prior year quarter.

Revenue in the overall Media Networks division, which includes ABC, ESPN and Disney Channel, were up about $600 million, 14%, and drove any strength in the overall report.

Revenue in the Parks and Resorts division were off 4% - despite the extra week - and operating income was off 17%.

Anyways, I’m not overly impressed with the quarter, though it was by no means bad, and valuation is full at these levels.

Disclosure: Top Gun has no position in Disney (DIS) shares.

Comments

[GimliJan:]

What would you consider to be a good entry point into DIS? I am thinking that we will have a market correction and during that time I would like to acquire some Disney as I believe once they have integrated the Marvel Brand and leverage it with it's brand through their web portal, Hulu and other sites they are making deals with, it should increase the share value and price. I "think" that around $24 is a good price to start buying. I would appreciate your opinion.

Nov 15 04:17 AM