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The Walt Disney Company (DIS - Free Report) reported robust second-quarter fiscal 2023 results after the closing bell on Wednesday, wherein it beat estimates for both earnings and revenues. The recent strength at its theme parks and an improving streaming business led to a robust performance. However, the company posted subscriber losses in Disney+ streaming services for the second consecutive quarter, sending shares down 4.8% in after-market trade.
This has put ETFs with the largest allocation to this global media and entertainment company in focus for the days ahead. These funds include Invesco NASDAQ Internet ETF (PNQI - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) , Invesco S&P 500 Equal Weight Communication Services ETF and Communication Services Select Sector SPDR Fund (XLC - Free Report) .
Earnings in Detail
The company reported earnings per share of 93 cents, topping the Zacks Consensus Estimate of 89 cents but decreasing from the year-ago earnings of $1.08. Revenues climbed 13% year over year to $21.8 billion and edged past the Zacks Consensus Estimate of $21.73 billion.
The entertainment giant lost 4 million new subscribers during the quarter, with the Disney+ user base declining 2.5% year over year to 157.8 million subscribers. Most of the loss stemmed from the Disney+ Hotstar offering in India after it lost streaming rights to the Indian Premier League cricket matches. Disney also shed 300,000 customers in the United States and Canada, where it raised prices last December (read: 4 Sector ETFs to Benefit from Strong April Jobs Data).
Meanwhile, Hulu had 48.2 million subscribers, flat with the year-ago quarter, and ESPN+ had 25.3 million users, up 2% year over year.
Invesco NASDAQ Internet ETF follows the Nasdaq CTA Internet Index, which measures the performance of companies engaged in Internet-related businesses listed on the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. The product holds 85 stocks in its basket, with Disney occupying the fifth position with 7.1% of assets.
Invesco NASDAQ Internet ETF has amassed $537.8 million in its asset base and charges 60 bps in fees per year. The fund trades in a light volume of 19,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 112 stocks in its basket, with Disney occupying the fourth position at 5.8% (read: How Will Telecom ETFs Navigate Mixed Results in Q1 Earning?).
Fidelity MSCI Communication Services Index ETF has amassed $663.8 million in its asset base and trades in an average daily volume of 150,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Communication Services ETF also targets the communication service sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 115 stocks in its basket, Disney takes the fourth spot with a 5.8% share. Interactive media & services is the top sector, accounting for 44.3% of the portfolio, while movies & entertainment, integrated telecommunication services, and cable & satellite round off the next three.
Vanguard Communication Services ETF has AUM of $2.8 billion and trades in a good volume of 147,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Invesco S&P 500 Equal Weight Communication Services ETF
Invesco S&P 500 Equal Weight Communication Services ETF follows the S&P 500 Equal Weight Communication Services Plus Index. It holds 26 stocks in its basket, with Disney occupying the seventh position at 4.8%.
Invesco S&P 500 Equal Weight Communication Services ETF has amassed $119.5 million in its asset base and trades in an average daily volume of 17,000 shares. It charges 40 bps in annual fees and has a Zacks ETF Rank #2 (read: 5 Defensive Investment ETF Strategies for Your Portfolio).
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $11.2 billion in its asset base. It follows the Communication Services Select Sector Index and holds 25 stocks in its basket, with Disney occupying the sixth position at 4.3%. About 50% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two.
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 7.4 million shares. It has a Zacks ETF Rank #2.
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ETFs in Focus on Strong Walt Disney Q2 Earnings
The Walt Disney Company (DIS - Free Report) reported robust second-quarter fiscal 2023 results after the closing bell on Wednesday, wherein it beat estimates for both earnings and revenues. The recent strength at its theme parks and an improving streaming business led to a robust performance. However, the company posted subscriber losses in Disney+ streaming services for the second consecutive quarter, sending shares down 4.8% in after-market trade.
This has put ETFs with the largest allocation to this global media and entertainment company in focus for the days ahead. These funds include Invesco NASDAQ Internet ETF (PNQI - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) , Invesco S&P 500 Equal Weight Communication Services ETF and Communication Services Select Sector SPDR Fund (XLC - Free Report) .
Earnings in Detail
The company reported earnings per share of 93 cents, topping the Zacks Consensus Estimate of 89 cents but decreasing from the year-ago earnings of $1.08. Revenues climbed 13% year over year to $21.8 billion and edged past the Zacks Consensus Estimate of $21.73 billion.
The entertainment giant lost 4 million new subscribers during the quarter, with the Disney+ user base declining 2.5% year over year to 157.8 million subscribers. Most of the loss stemmed from the Disney+ Hotstar offering in India after it lost streaming rights to the Indian Premier League cricket matches. Disney also shed 300,000 customers in the United States and Canada, where it raised prices last December (read: 4 Sector ETFs to Benefit from Strong April Jobs Data).
Meanwhile, Hulu had 48.2 million subscribers, flat with the year-ago quarter, and ESPN+ had 25.3 million users, up 2% year over year.
ETFs in Focus
Invesco NASDAQ Internet ETF (PNQI - Free Report)
Invesco NASDAQ Internet ETF follows the Nasdaq CTA Internet Index, which measures the performance of companies engaged in Internet-related businesses listed on the New York Stock Exchange, NYSE American, Cboe Exchange or The Nasdaq Stock Market. The product holds 85 stocks in its basket, with Disney occupying the fifth position with 7.1% of assets.
Invesco NASDAQ Internet ETF has amassed $537.8 million in its asset base and charges 60 bps in fees per year. The fund trades in a light volume of 19,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 112 stocks in its basket, with Disney occupying the fourth position at 5.8% (read: How Will Telecom ETFs Navigate Mixed Results in Q1 Earning?).
Fidelity MSCI Communication Services Index ETF has amassed $663.8 million in its asset base and trades in an average daily volume of 150,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF also targets the communication service sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 115 stocks in its basket, Disney takes the fourth spot with a 5.8% share. Interactive media & services is the top sector, accounting for 44.3% of the portfolio, while movies & entertainment, integrated telecommunication services, and cable & satellite round off the next three.
Vanguard Communication Services ETF has AUM of $2.8 billion and trades in a good volume of 147,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Invesco S&P 500 Equal Weight Communication Services ETF
Invesco S&P 500 Equal Weight Communication Services ETF follows the S&P 500 Equal Weight Communication Services Plus Index. It holds 26 stocks in its basket, with Disney occupying the seventh position at 4.8%.
Invesco S&P 500 Equal Weight Communication Services ETF has amassed $119.5 million in its asset base and trades in an average daily volume of 17,000 shares. It charges 40 bps in annual fees and has a Zacks ETF Rank #2 (read: 5 Defensive Investment ETF Strategies for Your Portfolio).
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $11.2 billion in its asset base. It follows the Communication Services Select Sector Index and holds 25 stocks in its basket, with Disney occupying the sixth position at 4.3%. About 50% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two.
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 7.4 million shares. It has a Zacks ETF Rank #2.