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What's Going On With Disney Shares?

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The Zacks Consumer Discretionary sector has tumbled in 2022, down more than 35% and coming nowhere near the S&P 500’s performance.

A widely-recognized company in the realm, The Walt Disney Company (DIS - Free Report) , unveiled its Q4 and FY22 results after the close on November 8th.

Disney has assets spanning movies, television shows, and theme parks. In addition, the company’s premium streaming service, Disney +, has been a significant hit among consumers. 

Needless to say, the market wasn’t impressed with the results, with DIS shares experiencing adverse price action following the print.

Now down 43% year-to-date, the company’s share performance widely lags behind the general market.

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Let’s take a deeper dive into the print.

Disney Q4

Disney reported quarterly earnings of $0.30 per share, missing the Zacks Consensus EPS Estimate of $0.50 by 40% and representing a 19% Y/Y decrease.

Quarterly revenue came in at $20.1 billion, falling short of the Zacks Consensus Sales Estimate of $21.1 billion by 4.5% but reflecting a 9% Y/Y uptick.

Disney Parks, Experiences, and Products revenues for the quarter totaled $7.4 billion, penciling in a 34% increase from year-ago revenues of $5.5 billion.

Revenue from the company’s media and entertainment segment totaled $12.7 billion, representing a 3% decrease from the year-ago quarter and falling short of the $13.8 million Zacks Consensus Estimate by nearly 8%.

As mentioned previously, the company’s Disney+ streaming service has witnessed significant growth – DIS added 14.6 million total subscriptions throughout Q4, with 12.1 million coming from its Disney+ streaming service.

Disney+ subscribers now total 164.2 million, surpassing the Zacks Consensus Estimate of 162 million and reflecting a sizable 39% Y/Y uptick.

Further, Bob Chapek, CEO, expects Disney+ to achieve fiscal profitability in FY24, assuming no drastic shift in the economic climate occurs. It’s worth noting that the company’s ad-supported tier for Disney+ is still slated to roll out on December 8th, which can undoubtedly boost revenue.

Bottom Line

Disney (DIS - Free Report) has primarily posted mixed quarterly results as of late, falling short of earnings and revenue estimates in two of its last four quarters.

Shares have suffered after its latest print following less-than-expected results, falling short of earnings, revenue, and media and entertainment revenue estimates.

Currently, the entertainment giant carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a D.


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