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Disney (DIS) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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The Walt Disney Company (DIS - Free Report) reported second-quarter fiscal 2023 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate by 4.49% but declining 13.9% year over year.
Revenues increased 13.3% year over year to $21.82 billion but missed the consensus mark by 0.03%.
Segment Details
Media and Entertainment Distribution (64.4% of revenues) revenues increased 3.1% year over year to $14.04 billion.
Revenues from Linear Networks declined 7% year over year to $6.63 billion. Direct-to-Consumer revenues increased 12.5% year over year to $5.51 billion. Content Sales/Licensing and Other revenues increased 17.7% year over year to $2.2 billion.
The Walt Disney Company Price, Consensus and EPS Surprise
Parks, Experiences and Products revenues (35.6% of revenues) increased 17% year over year to $7.78 billion. Domestic revenues were $5.57 billion, up 13.8% year over year. International revenues jumped 106.3% year over year to $1.18 billion in the reported quarter.
Disney’s nearest peer, Comcast (CMCSA - Free Report) reported strong first-quarter 2023 results in its Theme Park business.
Comcast’s Theme Parks revenues increased 24.9% year over year to $1.95 billion, reflecting higher attendance and increases in guests.
Meanwhile, revenues from Disney’s Consumer Products decreased 13.6% year over year to $1.02 billion.
Subscriber Details
ESPN+ had 25.3 million paid subscribers at the end of the fiscal second quarter compared with 24.9 million at the end of the previous quarter.
Disney+, as of Apr 1, 2023, had 157.8 million paid subscribers compared with 161.8 million as of Dec 31, 2022.
Meanwhile, Disney’s Hulu ended the quarter with 48.2 million paid subscribers, up from 48 million reported in the year-ago quarter.
The average monthly revenue per paid subscriber for ESPN+ increased 2% year over year to $5.64.
The average monthly revenue per paid subscriber for Disney+ came in at $4.44, up 13% year over year.
The average monthly revenue per paid subscriber for Disney’s Hulu SVOD-only service decreased 6% year over year to $11.73.
The average monthly revenue per paid subscriber for Disney’s Hulu Live TV + SVOD service rose 5% from the year-ago quarter to $92.32.
Operating Details
Costs & expenses increased 10.7% year over year to $19.54 billion in the reported quarter.
Segmental operating income was $3.29 billion, down 11.2% year over year.
Media and Entertainment Distribution’s segmental operating income declined 42.4% year over year to $1.12 billion.
Linear Networks’ operating income decreased 35.1% to $1.83 billion.
Direct-to-Consumer operating loss was $659 million, narrower than the year-ago quarter’s loss of $887 million.
Content Sales/Licensing and Other operating losses were $50 million against an operating income of $16 million reported in the year-ago quarter.
Parks, Experiences and Products’ operating income was $2.17 billion, up 23.4% year over year.
The Domestic segment reported an operating income of $1.52 billion, up 9.7% year over year. The International segment reported an operating income of $156 million against an operating loss of $268 million reported in the year-ago quarter.
Consumer Products’ operating profit decreased 23% year over year to $491 million.
Balance Sheet
As of Apr 1, 2023, cash and cash equivalents were $10.4 billion compared with $8.47 billion as of Dec 31, 2022.
Total borrowings were $48.52 billion as of Apr 1, 2023 compared with $48.38 billion as of Dec 31, 2022.
Free cash flow was $1.99 billion in the reported quarter against free cash outflow of $2.16 billion in the previous quarter.
Zacks Rank & Stocks to Consider
Disney currently has a Zacks Rank #3 (Hold).
Disney shares have gained 7.1% year to date, underperforming the Zacks Consumer Discretionary sector’s gain of 12.1%.
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Disney (DIS) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
The Walt Disney Company (DIS - Free Report) reported second-quarter fiscal 2023 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate by 4.49% but declining 13.9% year over year.
Revenues increased 13.3% year over year to $21.82 billion but missed the consensus mark by 0.03%.
Segment Details
Media and Entertainment Distribution (64.4% of revenues) revenues increased 3.1% year over year to $14.04 billion.
Revenues from Linear Networks declined 7% year over year to $6.63 billion. Direct-to-Consumer revenues increased 12.5% year over year to $5.51 billion. Content Sales/Licensing and Other revenues increased 17.7% year over year to $2.2 billion.
The Walt Disney Company Price, Consensus and EPS Surprise
The Walt Disney Company price-consensus-eps-surprise-chart | The Walt Disney Company Quote
Parks, Experiences and Products revenues (35.6% of revenues) increased 17% year over year to $7.78 billion. Domestic revenues were $5.57 billion, up 13.8% year over year. International revenues jumped 106.3% year over year to $1.18 billion in the reported quarter.
Disney’s nearest peer, Comcast (CMCSA - Free Report) reported strong first-quarter 2023 results in its Theme Park business.
Comcast’s Theme Parks revenues increased 24.9% year over year to $1.95 billion, reflecting higher attendance and increases in guests.
Meanwhile, revenues from Disney’s Consumer Products decreased 13.6% year over year to $1.02 billion.
Subscriber Details
ESPN+ had 25.3 million paid subscribers at the end of the fiscal second quarter compared with 24.9 million at the end of the previous quarter.
Disney+, as of Apr 1, 2023, had 157.8 million paid subscribers compared with 161.8 million as of Dec 31, 2022.
Meanwhile, Disney’s Hulu ended the quarter with 48.2 million paid subscribers, up from 48 million reported in the year-ago quarter.
The average monthly revenue per paid subscriber for ESPN+ increased 2% year over year to $5.64.
The average monthly revenue per paid subscriber for Disney+ came in at $4.44, up 13% year over year.
The average monthly revenue per paid subscriber for Disney’s Hulu SVOD-only service decreased 6% year over year to $11.73.
The average monthly revenue per paid subscriber for Disney’s Hulu Live TV + SVOD service rose 5% from the year-ago quarter to $92.32.
Operating Details
Costs & expenses increased 10.7% year over year to $19.54 billion in the reported quarter.
Segmental operating income was $3.29 billion, down 11.2% year over year.
Media and Entertainment Distribution’s segmental operating income declined 42.4% year over year to $1.12 billion.
Linear Networks’ operating income decreased 35.1% to $1.83 billion.
Direct-to-Consumer operating loss was $659 million, narrower than the year-ago quarter’s loss of $887 million.
Content Sales/Licensing and Other operating losses were $50 million against an operating income of $16 million reported in the year-ago quarter.
Parks, Experiences and Products’ operating income was $2.17 billion, up 23.4% year over year.
The Domestic segment reported an operating income of $1.52 billion, up 9.7% year over year. The International segment reported an operating income of $156 million against an operating loss of $268 million reported in the year-ago quarter.
Consumer Products’ operating profit decreased 23% year over year to $491 million.
Balance Sheet
As of Apr 1, 2023, cash and cash equivalents were $10.4 billion compared with $8.47 billion as of Dec 31, 2022.
Total borrowings were $48.52 billion as of Apr 1, 2023 compared with $48.38 billion as of Dec 31, 2022.
Free cash flow was $1.99 billion in the reported quarter against free cash outflow of $2.16 billion in the previous quarter.
Zacks Rank & Stocks to Consider
Disney currently has a Zacks Rank #3 (Hold).
Disney shares have gained 7.1% year to date, underperforming the Zacks Consumer Discretionary sector’s gain of 12.1%.
Super League and Monro (MNRO - Free Report) are a couple of better-ranked stocks that investors can consider in the broader sector. Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Super League is set to announce its first-quarter 2023 results on May 15. SLGG shares have gained 96.5% year to date.
Monro is set to announce its fourth-quarter fiscal 2023 results on May 18. MNRO shares have gained 8.3% year to date.