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The Walt Disney Company (DIS - Free Report) reported mixed third-quarter fiscal 2023 results on Aug 9. The media conglomerate reported adjusted earnings of $1.03 per share, surpassing the Zacks Consensus Estimate by 4.04% but declining 5.5% year over year. Revenues increased 3.8% year over year to $22.33 billion but missed the consensus mark by 0.48%.
Disney shares have experienced a gain of around 4.75% (as of Aug 10) post results. According to Reuters, Disney CEO Bob Iger recognizes a demanding outlook for the near future, yet underscores advancements in cost reduction and creative focus.
Walt Disney Co CEO Bob Iger pledged to make the company’s streaming services profitable via a planned October price hike on its ad-free Disney+ and Hulu plans and a crackdown on password sharing expected to extend through next year.
Snapshot of Q3 Earnings
Revenues from Media and Entertainment Distribution, constituting 62.7% of total revenues, decreased 0.8% year over year to $14 billion. Direct-to-Consumer revenues increased 9.2% year over year to $5.53 billion. Content Sales/Licensing and Other revenues decreased 1.4% year over year to $2.08 billion.
Parks, Experiences and Products revenues, contributing 37.3% to total revenues, increased 12.6% year over year to $8.33 billion. Domestic earnings reached $5.65 billion, marking a 4.2% year-over-year increase, while international revenues surged by an impressive 94.4% year over year to $1.53 billion during the quarter.
Meanwhile, revenues from Disney’s Consumer Products decreased 3.2% year over year to $1.15 billion.
Subscriber Details
ESPN+ had 25.2 million paid subscribers at the end of the fiscal third quarter compared with 25.3 million at the end of the previous quarter, with the average monthly revenues per paid subscriber decreasing 3% year over year to $5.45.
Disney+, as of Jul 1, 2023, had 146.1 million paid subscribers compared with 157.8 million as of Apr 1, 2023. Meanwhile, Disney’s Hulu ended the quarter with 48.3 million paid subscribers, up from 48.2 million reported in the previous quarter.
ETFs in Focus
The earnings outcomes could significantly influence ETFs with investments in this major media player. Below, we have spotlighted ETFs that have exposure to Disney.
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 S-Network Streaming & Gaming Index with a basket of 45 securities. The fund has gathered an asset base of $4.48 million and charges an annual fee of 0.70%.
First Trust S-Network Streaming and Gaming ETF has an exposure of 4.81% in Disney. The fund gained about 0.57% post results (as of Aug 10).
Vanguard Communication Services ETF seeks to track the performance of MSCI US Investable Market Communication Services 25/50 Index with a basket of 118 securities. The fund has an asset base of $3.47 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 4.77% in Disney and a Zacks ETF Rank #3 (Hold), along with a Medium risk outlook. The fund gained around 0.71% post results (as of Aug 10).
Invesco Dynamic Media ETF
Invesco Dynamic Media ETF seeks to track the performance of the Dynamic Media Intellidex Index with a basket of 31 securities. The fund has amassed an asset base of $32.45 million and charges an annual fee of 0.63%.
Invesco Dynamic Media ETF has an exposure of 4.63% in Disney and a Zacks ETF Rank #4 (Sell), along with a Medium risk outlook. The fund gained about 0.02% post results (as of Aug 10).
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 108 securities. The fund has an asset base of $789.88 million and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 4.36% in Disney and a Zacks ETF Rank #2 (Buy), along with a Medium risk outlook. The fund gained about 0.32% post results (as of Aug 10).
Invesco S&P 500 Equal Weight Communication Services ETF seeks to track the performance of S&P 500 Equal Weight Communication Services Plus Index with a basket of 26 securities. The fund commands an asset base of $55 million and charges an annual fee of 0.40%.
Invesco S&P 500 Equal Weight Communication Services ETF has an exposure of 4.27% in Disney and has a Zacks ETF Rank #2. The fund gained around 0.47% post results (as of Aug 10).
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Earnings ETFs in Focus on Disney's Q3 Earnings
The Walt Disney Company (DIS - Free Report) reported mixed third-quarter fiscal 2023 results on Aug 9. The media conglomerate reported adjusted earnings of $1.03 per share, surpassing the Zacks Consensus Estimate by 4.04% but declining 5.5% year over year. Revenues increased 3.8% year over year to $22.33 billion but missed the consensus mark by 0.48%.
Disney shares have experienced a gain of around 4.75% (as of Aug 10) post results. According to Reuters, Disney CEO Bob Iger recognizes a demanding outlook for the near future, yet underscores advancements in cost reduction and creative focus.
Walt Disney Co CEO Bob Iger pledged to make the company’s streaming services profitable via a planned October price hike on its ad-free Disney+ and Hulu plans and a crackdown on password sharing expected to extend through next year.
Snapshot of Q3 Earnings
Revenues from Media and Entertainment Distribution, constituting 62.7% of total revenues, decreased 0.8% year over year to $14 billion. Direct-to-Consumer revenues increased 9.2% year over year to $5.53 billion. Content Sales/Licensing and Other revenues decreased 1.4% year over year to $2.08 billion.
Parks, Experiences and Products revenues, contributing 37.3% to total revenues, increased 12.6% year over year to $8.33 billion. Domestic earnings reached $5.65 billion, marking a 4.2% year-over-year increase, while international revenues surged by an impressive 94.4% year over year to $1.53 billion during the quarter.
Meanwhile, revenues from Disney’s Consumer Products decreased 3.2% year over year to $1.15 billion.
Subscriber Details
ESPN+ had 25.2 million paid subscribers at the end of the fiscal third quarter compared with 25.3 million at the end of the previous quarter, with the average monthly revenues per paid subscriber decreasing 3% year over year to $5.45.
Disney+, as of Jul 1, 2023, had 146.1 million paid subscribers compared with 157.8 million as of Apr 1, 2023. Meanwhile, Disney’s Hulu ended the quarter with 48.3 million paid subscribers, up from 48.2 million reported in the previous quarter.
ETFs in Focus
The earnings outcomes could significantly influence ETFs with investments in this major media player. Below, we have spotlighted ETFs that have exposure to Disney.
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 S-Network Streaming & Gaming Index with a basket of 45 securities. The fund has gathered an asset base of $4.48 million and charges an annual fee of 0.70%.
First Trust S-Network Streaming and Gaming ETF has an exposure of 4.81% in Disney. The fund gained about 0.57% post results (as of Aug 10).
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF seeks to track the performance of MSCI US Investable Market Communication Services 25/50 Index with a basket of 118 securities. The fund has an asset base of $3.47 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 4.77% in Disney and a Zacks ETF Rank #3 (Hold), along with a Medium risk outlook. The fund gained around 0.71% post results (as of Aug 10).
Invesco Dynamic Media ETF
Invesco Dynamic Media ETF seeks to track the performance of the Dynamic Media Intellidex Index with a basket of 31 securities. The fund has amassed an asset base of $32.45 million and charges an annual fee of 0.63%.
Invesco Dynamic Media ETF has an exposure of 4.63% in Disney and a Zacks ETF Rank #4 (Sell), along with a Medium risk outlook. The fund gained about 0.02% post results (as of Aug 10).
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 108 securities. The fund has an asset base of $789.88 million and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 4.36% in Disney and a Zacks ETF Rank #2 (Buy), along with a Medium risk outlook. The fund gained about 0.32% post results (as of Aug 10).
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 S&P 500 Equal Weight Communication Services Plus Index with a basket of 26 securities. The fund commands an asset base of $55 million and charges an annual fee of 0.40%.
Invesco S&P 500 Equal Weight Communication Services ETF has an exposure of 4.27% in Disney and has a Zacks ETF Rank #2. The fund gained around 0.47% post results (as of Aug 10).