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Disney's Box Office Results Boost Studio Entertainment Unit
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The Walt Disney Company (DIS - Free Report) has hit a milestone at the global box office yet again by touching $7 billion in year-to-date ticket sales.
Disney Animation’s flick Ralph Breaks the Internet reached the zenith of the top 10 weekend domestic box office estimates, pulling the company through the $7 billion mark.
This comes a couple of years after the company had broken the $6.9 billion record set by Comcast’s (CMCSA - Free Report) Universal Studios, with a string of top-grossing films like Rogue One, Finding Dory, Captain America and Zootopia.
Marvel’s Avengers: Infinity War, Black Panther and Ant-Man and the Wasp, Pixar’s Incredibles 2 and Lucasfilm’s Solo: A Star Wars Story were among the other revenue pulling films for Disney this year.
Moreover, with Mary Poppins Returns releasing on Dec 19, Disney might outpace the domestic gross of $3 billion and hit another industry record.
Focus on Studio Entertainment
Disney’s Studio Entertainment segment, which produces the animated and live-action motion pictures, direct-to-video programming, musical recordings and live stage plays, is a significant revenue generator.
A part of Disney’s tradition of producing top-grossing animated and superhero films can be attributed to the strategic acquisitions it makes from time to time. It has spent about $15.4 billion in acquiring Pixar, Marvel Comics and Lucasfilm since 2006. These assets have delivered most of the top-grossing films this year.
These acquisitions have proven to be profitable for the company, which has generated $10 billion in revenues only from its Studio Entertainment segment at the end of fiscal 2018, increasing 19% year over year.
Moreover, in the final quarter of fiscal 2018, the Studio Entertainment segment’s operating income surged 173.4% to $596 million.
Rise in operating income was driven by strong growth in theatrical, TV/SVOD and home entertainment distribution and lower film cost impairments.
The interesting lineup of movies next year, including Captain Marvel, Dumbo, Aladdin, The Lion King, Toy Story 4 and the next Avengers film, is expected to deliver yet another year of massive hits and impressive segmental performance.
Long-term earnings growth for PCMI and Churchill Downs is projected to be 20% each.
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Image: Bigstock
Disney's Box Office Results Boost Studio Entertainment Unit
The Walt Disney Company (DIS - Free Report) has hit a milestone at the global box office yet again by touching $7 billion in year-to-date ticket sales.
Disney Animation’s flick Ralph Breaks the Internet reached the zenith of the top 10 weekend domestic box office estimates, pulling the company through the $7 billion mark.
This comes a couple of years after the company had broken the $6.9 billion record set by Comcast’s (CMCSA - Free Report) Universal Studios, with a string of top-grossing films like Rogue One, Finding Dory, Captain America and Zootopia.
Marvel’s Avengers: Infinity War, Black Panther and Ant-Man and the Wasp, Pixar’s Incredibles 2 and Lucasfilm’s Solo: A Star Wars Story were among the other revenue pulling films for Disney this year.
Moreover, with Mary Poppins Returns releasing on Dec 19, Disney might outpace the domestic gross of $3 billion and hit another industry record.
Focus on Studio Entertainment
Disney’s Studio Entertainment segment, which produces the animated and live-action motion pictures, direct-to-video programming, musical recordings and live stage plays, is a significant revenue generator.
A part of Disney’s tradition of producing top-grossing animated and superhero films can be attributed to the strategic acquisitions it makes from time to time. It has spent about $15.4 billion in acquiring Pixar, Marvel Comics and Lucasfilm since 2006. These assets have delivered most of the top-grossing films this year.
These acquisitions have proven to be profitable for the company, which has generated $10 billion in revenues only from its Studio Entertainment segment at the end of fiscal 2018, increasing 19% year over year.
The Walt Disney Company Revenue (TTM)
The Walt Disney Company Revenue (TTM) | The Walt Disney Company Quote
Moreover, in the final quarter of fiscal 2018, the Studio Entertainment segment’s operating income surged 173.4% to $596 million.
Rise in operating income was driven by strong growth in theatrical, TV/SVOD and home entertainment distribution and lower film cost impairments.
The interesting lineup of movies next year, including Captain Marvel, Dumbo, Aladdin, The Lion King, Toy Story 4 and the next Avengers film, is expected to deliver yet another year of massive hits and impressive segmental performance.
Zacks Rank & Stocks to Consider
Disney currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Consumer Discretionary sector are PCM, Inc. , and Churchill Downs, Incorporated (CHDN - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for PCMI and Churchill Downs is projected to be 20% each.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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