The Walt Disney Company (DIS) - NYSE
  • Wed, May 11, 10:33 AM
    • Walt Disney (NYSE:DIS) is off 4.2%, giving up a chunk of the past month's gains (it was up 10.8% since April 12), after yesterday saw the company's first earnings miss in more than two years.
    • Analysts have poured out updates today. Regarding the elephant in Disney's earnings room, ESPN, Piper Jaffray says the network wasn't the reason for weakness, and that ad sales are pacing up there (and scatter pricing is trending 20% above upfront levels at ABC). The firm's Stan Meyers maintains Disney at Overweight with a $120 price target.
    • Bernstein (Market Perform, $110 price target) suspects the stock may be caught in a range as estimates legged down again. Consumer products missed (though that may be a problem of systematically high forecasting, not a business problem, analyst Todd Juenger says) and a revenue slowdown at Parks may mainly be yield management -- which leaves (undisclosed) domestic affiliate fees as the key worry. They're liable to decelerate again in H2 as Time Warner Cable and Charter merge, Juenger says.
    • Deutsche Bank acknowledged a tough quarter but noted guidance wasn't as bad as it looked at first. Advertising outlook isn't related to the New Year's college football playoff timing that spurred a decline in Q2, and films and parks look like they can outperform expectations. Consumer products missed "pretty materially (18%)," but "Consumer Products & Interactive Media is an inherently volatile business from quarter to quarter." It's maintaining a Hold rating and $113 price target.
    • Topeka Capital Markets barely trimmed its price target (to $129 from $130) and rates the stock a Buy. Jefferies Group, meanwhile, reiterated its Hold and cut its price target further, to $92 from $101.05, noting "downside risk to Cable segment EBIT, tough Studio comps (F3Q should be another big quarter), and a deceleration in domestic Park EBIT growth in F17 and beyond."
    | Wed, May 11, 10:33 AM | 16 Comments
  • Tue, May 10, 5:43 PM
    • Last summer, with trouble brewing at ESPN, Walt Disney (NYSE:DIS) CEO Bob Iger took the subject head-on at the very beginning of the company's earnings call. This afternoon, it's all about the wild success in Filmed Entertainment and upcoming Shanghai park launch that led off a relatively brief set of prepared remarks, rather than the sports network or who takes over for its departed COO (and what that means for Iger's departure).
    • With the call still under way, shares are now down 5.3% in after-hours trade following the earnings miss.
    • Disney became the fastest ever to $1B at the domestic box office -- hitting it last weekend in just 128 days, beating last year's record (Universal, in 165 days), with the help of the all-time fifth-best opening, by Captain America: Civil War.
    • But at ESPN, ad revenue fell 13%. Iger declined to give numbers on over-the-top deals when it comes to Sling TV and Sony, but "we anecdotally were told that after ESPN was included in their package, they saw a very encouraging trend in sign-ups." He added that he doesn't believe getting into Hulu distribution will affect current distribution relationships.
    • As for the surprising exit of Iger's heir apparent, COO Thomas Staggs, Iger says "we're sorry what came to pass," but "I will remind people that I have just over two years left" as CEO, the board is very actively engaged in succession planning, and "I don't currently have any plans to extend beyond the June [2018] expiration date."
    | Tue, May 10, 5:43 PM | 13 Comments
  • Tue, May 10, 5:08 PM
    • Walt Disney (NYSE:DIS) is now down 6.6% after hours as its earnings call gets under way. Along with its earnings miss, the company is shuttering its videogame publishing unit.
    • Disney is taking a $147M charge against earnings to put an end to its Infinity-branded "toys-to-life" console business.
    • Revenues in Consumer Products and Interactive Media, a division which the company merged last year, had fallen 2% this quarter to $1.19B.
    • The company launched Infinity in summer 2013, following on success by Activision Blizzard and its Skylanders toys-to-life products, and promised to fill it with buyable characters from Disney animation, Star Wars and Marvel properties.
    • Updated: Disney says it will still release Infinity playsets/characters for Alice Through the Looking Glass and Finding Dory later this month and in June.
    | Tue, May 10, 5:08 PM | 16 Comments
  • Tue, May 10, 4:26 PM
    • Walt Disney (NYSE:DIS) is sliding after hours, now down 6.3%, following its first miss on earnings in more than two years.
    • The company fell short of expectations on revenues as well as profits, which grew just $35M to $2.1B total, as the film division is going gangbusters but its biggest business (Networks) was flat in revenue thanks to cable declines, and consumer products sales fell.
    • Revenues by segment: Media Networks, $5.79B (down fractionally); Parks and Resorts, $3.93B (up 4%); Studio Entertainment, $2.06B (up 22%); Consumer Products and Interactive Media, $1.19B (down 2%).
    • Operating income grew in all segments except Consumer Products and Interactive Media, where it dropped 8% to $357M. Operating income grew 9% in Media Networks, to $2.3B.
    • Conference call to come at 5 p.m. ET.
    • Press Release
    | Tue, May 10, 4:26 PM | 104 Comments
  • Tue, May 10, 4:18 PM
    • Walt Disney  (NYSE:DIS): FQ2 EPS of $1.36 misses by $0.04.
    • Revenue of $12.97B (+4.1% Y/Y) misses by $220M.
    • Shares -6%.
    • Press Release
    | Tue, May 10, 4:18 PM | 53 Comments
  • Mon, May 9, 5:35 PM
  • Wed, Feb. 10, 10:42 AM
    • After marking its biggest one-day decline in six months earlier this morning (down 6.6%), Walt Disney (NYSE:DIS) is recovering, down just 3.1% after it posted record Q1 earnings that still drew eyes toward disappointing Media Networks results.
    • The earnings report drew price target cuts from a number of analysts pointing to subscriber trends. BMO Capital's gone low, cutting its target to $95 from $110, as Daniel Salmon pointed to a "notable miss" in Media Networks along with a slight miss in the company's merged consumer licensing/interactive business.
    • BTIG's Rich Greenfield noted on CNBC that while Star Wars results have been fantastic, Disney is still very much a media networks company more than a content company.
    • Guggenheim also went to the low side, trimming its fair value target to $96. Others cut targets but remaining in triple figures: FBR maintained its Outperform rating but cut its target to $101, while JPMorgan Chase (also Overweight) reduced its target to $118. Nomura trimmed its target slightly, to $110 from $115.
    • Previously: Disney call: 'Star Wars' soars; ESPN pessimism 'more dire' then deserved (Feb. 09 2016)
    • Previously: Disney now down 3.2% after 'Star Wars' pushes record quarterly earnings (Feb. 09 2016)
    | Wed, Feb. 10, 10:42 AM | 12 Comments
  • Tue, Feb. 9, 5:58 PM
    • Shares of Walt Disney (NYSE:DIS) continued declining as much as 7% in postmarket trading early in its earnings conference call, and made up a bit of ground during ESPN-related questioning -- now down 3.4%, despite upbeat talk from CEO Bob Iger: "We feel really good about how all four of our businesses are positioned."
    • Star Wars boosted Studio Entertainment (revenues up 46%; operating income up 86%), and not just the new movie, either: Classic titles in the franchise drove increased home entertainment results, and higher TV/SVOD distribution was driven by global growth.
    • Parks and Resorts increased operating income (up 22%) faster than revenue (up 9% to $4.3B), boosted by domestic parks that saw attendance growth and higher guest spending, with higher average ticket prices at parks and the cruise line. International results were affected of course by higher pre-opening costs at Shanghai, opening in June.
    • With analysts and the market seemingly focused like lasers on ESPN, Iger noted "We've actually seen an uptick in ESPN subs, which is encouraging"; notions that ESPN is cratering in any way are "ridiculous; sports is too popular" and "the predictions many have made are more dire than they should be."
    • While there were discrepancies among public comments last summer about what caused declines (cord-cutting or skinny bundles?), execs are in line now: Nielsen was telling them it was a simple loss of subs, but with corrected numbers, "we concluded that our sub loss was largely due to the fact that ESPN was not part of skinny bundles that had launched."
    • Iger's comments on TV suggested a split bet: "The expanded basic bundle will remain the dominant product for consumers for the foreseeable future," he says, while also noting that the company has brands built for over-the-top: Star Wars, Marvel and (most interestingly) ESPN. "Expect innovation and pursuit of new distribution opportunities."
    • Previously: Disney now down 3.2% after 'Star Wars' pushes record quarterly earnings (Feb. 09 2016)
    • Related: Walt Disney's (DIS) CEO Bob Iger on Q1 2016 Results - Earnings Call Transcript (Feb. 09 2016)
    | Tue, Feb. 9, 5:58 PM | 80 Comments
  • Tue, Feb. 9, 4:37 PM
    • Walt Disney (NYSE:DIS) has turned south after hours, -3.2%, after posting an all-time high in quarterly earnings, easily beating expectations with a little help from a space opera. Revenues jumped 14% Y/Y.
    • Earnings of $2.9B were a record and up nearly 32% from the prior year.
    • Studio Entertainment and Consumer Products & Interactive Media both reported record operating income, up 86% and 23% respectively, credited to success from Star Wars: The Force Awakens. Parks & Resorts grew operating income 22%, while it fell 6% at Media Networks.
    • Revenue by segment: Media Networks, $6.33B (up 8%); Parks & Resorts, $4.28B (up 9%); Studio Entertainment, $2.72B (up 46%); Consumer Products & Interactive Media, $1.91B (up 8%).
    • The company pointed to timing of the College Football Playoff -- games moved to the New Year's holiday and ratings sank -- for the hit to Media Networks. But: "We've actually seen an uptick recently in ESPN subs," CEO Bob Iger tells CNBC.
    • Conference call to come at 5 p.m. ET.
    • Press Release
    | Tue, Feb. 9, 4:37 PM | 90 Comments
  • Tue, Feb. 9, 4:22 PM
    • Walt Disney  (NYSE:DIS): FQ1 EPS of $1.63 beats by $0.18.
    • Revenue of $15.24B (+13.8% Y/Y) beats by $490M.
    • Shares +2.8%.
    • Press Release
    | Tue, Feb. 9, 4:22 PM | 71 Comments
  • Tue, Feb. 9, 3:24 PM
    • What to watch as Walt Disney (DIS +0.5%) reports after the bell: Anything to say about whether ESPN can dampen top-line enthusiasm coming from the early success of Star Wars.
    • Results should still be strong Y/Y, says SA contributor JJ Kinahan; the question is whether the recent strength is sustainable as subscribers depart ESPN by the millions.
    • Implied volatility is high, Kinahan says, suggesting a strong move either direction out of earnings. Some options traders are buying puts to hedge against a drop.
    • Analyst Michael Nathanson warns of legitimate concern over twin levers on ESPN: declining affiliate fee growth against the rising cost of providing sports. The company needs to be proactive about the ESPN narrative to fend off long-term worries, he says.
    | Tue, Feb. 9, 3:24 PM | 5 Comments
  • Mon, Feb. 8, 5:35 PM
  • Nov. 5, 2015, 6:18 PM
    • Disney (NYSE:DIS) went into its earnings call relatively flat in after-hours trading and is now up fractionally as execs took questions about the film pipeline, parks, and cable TV.
    • While CEO Bob Iger used the beginning of last quarter's earnings call to talk about ESPN subscriber losses -- talk blamed for driving media stocks down overall this summer -- the Q4 call started out all Star Wars. The company's pleased with ticket-sales excitement and looking ahead to videogames like Star Wars: Battlefront and a cavalcade of associated merchandise.
    • Disney can't recognize revenue from the already-begun sales of (new) Star Wars consumer products until the movie opens, though execs say they're excited for the eventual inclusion in Q1, and merchandise tied to the previous films is building strength.
    • ESPN was downplayed despite questions. There's nothing he'd retract from previous comments, Iger says: "We decided to be candid, I think refreshingly so, regarding sub losses in the last period. We feel there should be no reason to panic over comments like that ... We feel bullish about ESPN and ESPN's business."
    • On the ESPN layoffs: "The best interpretation is that you should see it as not connected to anything else."
    • With DisneyLife launching as a direct service in the UK, "We see the opportunity to grow across other markets," Iger says. "We are very interested in taking content directly to consumers as a company."
    • Disney is declining to provide an outlook for the road ahead, though Iger did drop a minor bombshell on CNBC: "I can only tell you that Luke Skywalker is in the movie."
    • Previously: Disney -1.3% after Q3 profit beats; revenues miss despite 9% growth (Nov. 05 2015)
    • Previously: After months of dealing, Disney networks joining PlayStation Vue service (Nov. 05 2015)
    | Nov. 5, 2015, 6:18 PM | 23 Comments
  • Nov. 5, 2015, 4:26 PM
    • Walt Disney (NYSE:DIS) has slipped 1.3% after hours in the wake of its fiscal Q4 report where profits beat solidly but revenues came up slightly short.
    • EPS rose 10% on a GAAP basis and 35% on a non-GAAP basis, to $1.20. CEO Bob Iger noted fiscal 2015 brought "the highest revenue, net income and adjusted EPS in the company's history."
    • Revenues by segment: Media Networks, $5.83B (up 12%); Parks & Resorts, $4.36B (up 10%); Studio Entertainment, $1.78B (flat); Consumer Products, $1.2B (up 11%); Interactive, $347M (down 4%).
    • Again, Interactive was the revenue disappointment, though its operating income rose 72% to $31M. In operating income, Studio Entertainment more than doubled, to $530M; Media Networks was up 27%, to $1.8B; Parks and Resorts posted $738M (up 7%)and Consumer Products $416M (up 10%).
    • Earlier today, the company noted it was adding its TV networks to PlayStation Vue streaming service after months of negotiation.
    • Conference call to come at 5 p.m. ET.
    | Nov. 5, 2015, 4:26 PM | 42 Comments
  • Nov. 5, 2015, 4:17 PM
    • Walt Disney  (NYSE:DIS): FQ4 EPS of $1.20 beats by $0.06.
    • Revenue of $13.51B (+9.0% Y/Y) misses by $40M.
    • Shares -2.4%.
    | Nov. 5, 2015, 4:17 PM | 54 Comments
Company Description
The Walt Disney Co. together with its subsidiaries and affiliates is a diversified international family entertainment and media enterprise. It operates through five business segments: Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Media... More
Sector: Services
Industry: Entertainment - Diversified
Country: United States