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On Feb 7, The Walt Disney Company (DIS - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $1.22 per share, which surged 23% from the year-ago quarter and breezed past the Zacks Consensus Estimate by 25.77%. However, the media conglomerate reported revenues of $23.55 billion, which failed to surpass the Zacks Consensus Estimate by 0.58%.
Shares of the media titan have jumped about 11.33% since Feb 7, following Disney's board approval of a $3 billion share buyback and a 50% dividend increase from the dividend paid in January, according to Reuters. While streaming losses narrowed, earnings per share surpassed the forecasts of Wall Street analysts. This, too, contributed to the surge in share prices.
According to Disney CEO, Bob Iger, the company’srecent success marks a turning point, ushering in a new era, along with being committed to strengthening ESPN, driving profitability in streaming, revitalizing our film studios and accelerating growth in parks and experiences.
Snapshot of Q1 Earnings
Revenues from Media and Entertainment Distribution, which constitutes 42.4% of revenues, decreased 6.5% year over year to $9.98 billion.Direct-to-Consumer revenues increased 15% year over year to $5.54 billion.Content Sales/Licensing and Other revenues plunged 38.4% year over year to $1.63 billion.
Parks, Experiences and Products revenues, which contributed38.8% of revenues, increased 6.9% year over year to $9.13 billion.Domestic revenues were $6.29 billion, up 3.7% year over year. International revenues jumped 34.9% year over year to $1.47 billion in the reported quarter.
Revenues for Disney Experiences saw a 7% increase, reaching $9.13 billion, despite a decline in attendance reported at domestic theme parks.Moreover, increased ticket prices and a rise in passenger cruise days contributed to growth at Disney's Cruise Line.
Subscriber Information
Average monthly revenue per paid subscriber, increased for both Domestic Disney+ and Disney+ Hotstar, driven by to an improvement in retail pricing, partially offset by a higher mix of subscribers to promotional offerings.
Disney+, as of Dec 31, 2023, had 111.3 million paid subscribers compared with 112.6 million as of Sep 30, 2023. Increase in paid subscribers for ESPN+ also witnessed a surge reaching 25.2 million at the end of the fiscal first quarter compared with 26 million at the end of the previous quarter.
ETFs in Focus
The earnings outcomes could significantly influence ETFs with investments in this major media player. Below, we have put the spotlight on ETFs that have exposure to Disney.
AdvisorShares Gerber Kawasaki ETF employs an active strategy seeking long-term capital appreciation with a basket of 31 securities. The fund has an asset base of $19.7 million and charges an annual fee of 0.75%.
AdvisorShares Gerber Kawasaki ETF has an exposure of 5.36% in DIS. The fund has gained 3.71% in the past week (as of Feb 8).
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming and Gaming ETF seeks to track the performance of the S-Network Streaming & Gaming Index, with a basket of 46 securities. The fund has amassed an asset base of $4.9 million and charges an annual fee of 0.70%.
First Trust S-Network Streaming and Gaming ETF has an exposure of 5.12% in DIS. The fund has gained 3.10% in the past week (as of Feb 8).
ALPS Global Travel Beneficiaries ETFN seeks to track the performance of the S-Network Global Travel Index, with a basket of 78 securities. The fund has amassed an asset base of $6.7 million and charges an annual fee of 0.65%.
ALPS Global Travel Beneficiaries ETF has an exposure of 4.93% in DIS. The fund has gained 2.22% in the past week (as of Feb 8).
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index, with a basket of 22 securities. The fund has gathered an asset base of $17.18 billion and charges an annual fee of 0.10%.
Communication Services Select Sector SPDR Fund has an exposure of 4.76% in DIS. The fund has gained 3.24% in the past week (as of Feb 8).
Invesco S&P 500 Equal Weight Communication Services ETF seeks to track the performance of the S&P 500 Equal Weight Communication Services Plus Index, with a basket of 26 securities. The fund has amassed an asset base of $62 million and charges an annual fee of 0.40%
Invesco S&P 500 Equal Weight Communication Services ETF has an exposure of 4.75% in DIS. The fund has fallen 3.40% in the past week (as of Feb 8).
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Focus on Disney ETFs Post Q1 Earnings Beat
On Feb 7, The Walt Disney Company (DIS - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $1.22 per share, which surged 23% from the year-ago quarter and breezed past the Zacks Consensus Estimate by 25.77%. However, the media conglomerate reported revenues of $23.55 billion, which failed to surpass the Zacks Consensus Estimate by 0.58%.
Shares of the media titan have jumped about 11.33% since Feb 7, following Disney's board approval of a $3 billion share buyback and a 50% dividend increase from the dividend paid in January, according to Reuters. While streaming losses narrowed, earnings per share surpassed the forecasts of Wall Street analysts. This, too, contributed to the surge in share prices.
According to Disney CEO, Bob Iger, the company’srecent success marks a turning point, ushering in a new era, along with being committed to strengthening ESPN, driving profitability in streaming, revitalizing our film studios and accelerating growth in parks and experiences.
Snapshot of Q1 Earnings
Revenues from Media and Entertainment Distribution, which constitutes 42.4% of revenues, decreased 6.5% year over year to $9.98 billion.Direct-to-Consumer revenues increased 15% year over year to $5.54 billion.Content Sales/Licensing and Other revenues plunged 38.4% year over year to $1.63 billion.
Parks, Experiences and Products revenues, which contributed38.8% of revenues, increased 6.9% year over year to $9.13 billion.Domestic revenues were $6.29 billion, up 3.7% year over year. International revenues jumped 34.9% year over year to $1.47 billion in the reported quarter.
Revenues for Disney Experiences saw a 7% increase, reaching $9.13 billion, despite a decline in attendance reported at domestic theme parks.Moreover, increased ticket prices and a rise in passenger cruise days contributed to growth at Disney's Cruise Line.
Subscriber Information
Average monthly revenue per paid subscriber, increased for both Domestic Disney+ and Disney+ Hotstar, driven by to an improvement in retail pricing, partially offset by a higher mix of subscribers to promotional offerings.
Disney+, as of Dec 31, 2023, had 111.3 million paid subscribers compared with 112.6 million as of Sep 30, 2023. Increase in paid subscribers for ESPN+ also witnessed a surge reaching 25.2 million at the end of the fiscal first quarter compared with 26 million at the end of the previous quarter.
ETFs in Focus
The earnings outcomes could significantly influence ETFs with investments in this major media player. Below, we have put the spotlight on ETFs that have exposure to Disney.
AdvisorShares Gerber Kawasaki ETF (GK - Free Report)
AdvisorShares Gerber Kawasaki ETF employs an active strategy seeking long-term capital appreciation with a basket of 31 securities. The fund has an asset base of $19.7 million and charges an annual fee of 0.75%.
AdvisorShares Gerber Kawasaki ETF has an exposure of 5.36% in DIS. The fund has gained 3.71% in the past week (as of Feb 8).
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming and Gaming ETF seeks to track the performance of the S-Network Streaming & Gaming Index, with a basket of 46 securities. The fund has amassed an asset base of $4.9 million and charges an annual fee of 0.70%.
First Trust S-Network Streaming and Gaming ETF has an exposure of 5.12% in DIS. The fund has gained 3.10% in the past week (as of Feb 8).
ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)
ALPS Global Travel Beneficiaries ETFN seeks to track the performance of the S-Network Global Travel Index, with a basket of 78 securities. The fund has amassed an asset base of $6.7 million and charges an annual fee of 0.65%.
ALPS Global Travel Beneficiaries ETF has an exposure of 4.93% in DIS. The fund has gained 2.22% in the past week (as of Feb 8).
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index, with a basket of 22 securities. The fund has gathered an asset base of $17.18 billion and charges an annual fee of 0.10%.
Communication Services Select Sector SPDR Fund has an exposure of 4.76% in DIS. The fund has gained 3.24% in the past week (as of Feb 8).
Invesco S&P 500 Equal Weight Communication Services ETF (RSPC - Free Report)
Invesco S&P 500 Equal Weight Communication Services ETF seeks to track the performance of the S&P 500 Equal Weight Communication Services Plus Index, with a basket of 26 securities. The fund has amassed an asset base of $62 million and charges an annual fee of 0.40%
Invesco S&P 500 Equal Weight Communication Services ETF has an exposure of 4.75% in DIS. The fund has fallen 3.40% in the past week (as of Feb 8).