Walt Disney
Overall, Disney shares are off by a bit more than 50% from their peak in February of last year. However, analysts remain bullish on the company as they are projecting $5.28 per share in earnings which equates to a forward P/E of 18. This is one of the lowest valuations for the company in decades.
Inside the Numbers
In its fiscal Q4, Disney reported $0.30 per share in earnings which came in below expectations of $0.55 per share. Revenue also missed expectations at $20.2 billion vs $21.2 billion.
Disney+ saw an increase of 12.1 million subscribers to reach 164.2 billion which was above expectations of 160.5 million. In total, Disney has 235 million streaming subscribers across Disney+, Hulu, and ESPN+ which makes it larger than Netflix
The company sees growth in its streaming division slowing sharply in the upcoming year. Disney is also expected to raise prices in the upcoming year and offer an ad-supported tier. It aims to achieve profitability for Disney+ in fiscal 2024.
Shares were also under pressure as the company issued full year guidance below expectations.
The Media and entertainment division saw a 3% drop in revenue to $12.7 billion which came in below expectations of $13.2 billion. This is mostly due to fewer theatrical and product releases.
The Parks, experiences, and products segment saw a 34% increase in revenue to reach $7.4 billion. However, this was just under estimates of $7.5 billion. Operating income for the segment was up 66% to reach $1.5 billion. This was below estimates due to higher costs that weren't completely offset by higher ticket revenue.
