For Immediate Release
Chicago, IL – December 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Walt Disney Company (DIS - Free Report) , Comcast (CMCSA - Free Report) , PCM, Inc. (PCMI - Free Report) and Churchill Downs, Inc. (CHDN - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Disney’s Box Office Results Boost Studio Entertainment Unit
The Walt Disney Company 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 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.
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, Inc., 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.
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