Media

Disney Earnings Aren't Enough For Investors

Chris Lange

Published: May 9, 2017 4:29 pm

Last Updated: January 12, 2020 12:11 pm

The Walt Disney Company (NYSE: DIS) reported its most recent quarterly results after markets closed on Tuesday. The company 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 $13.45 billion in revenue. The fiscal second-quarter from last year had $1.36 in EPS and $12.97 billion in revenue.

In terms of its segments the Mouse House 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 been plaguing this segment but management has a somewhat optimistic stance on EPSN. Disney Chairman and CEO Bob Iger noted that there is a rise in smaller digital streaming platforms and those that include EPSN will help increase engagement.

On the books, cash and cash equivalents totaled $3.8 billion at the end of the quarter, versus $4.61 billion at the end of the previous fiscal year.

Iger commented in the report:

Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts. Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth. We’re pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term.

Shares of Disney closed Tuesday up 0.6% at $112.06, with a consensus analyst price target of $119.11 and a 52-week trading range of $90.32 to $116.10. Following the release of the earnings report, the stock was down nearly 2% at $110.00 in the after-hours trading session.