Market and
partners news

Uncategorized
Analysis of Walt Disney Company.

Analysis of Walt Disney Company.

17 August 2022

Disney: streaming will help to earn

The Disney company is perhaps the most famous symbol of the entertainment industry in the world. These are not only studios, but also theme parks, a streaming service, a TV channel, and shops. The company’s capitalization in 2022 is $253 billion.

The company’s data for the third fiscal quarter of 2022 turned out to be quite promising. The details are as follows:

  • total quarterly revenue +26% YoY to $21.5 billion, above the forecast of $21 billion;
  • revenue +28% YoY for 9 months to $62.6 billion;
  • quarterly profit in the Parks, Experiences & Product segment +70% YoY to $7.4 billion. Specifically, amusement parks have increased revenue twice as much as a year earlier;
  • quarterly revenue in the Media & Entertainment Distribution segment +11% YoY to $14.1 billion;
  • revenue from the streaming direction +19% to $5.1 billion.

Business strengths in the moment:

  • growth in the number of paid subscribers for the quarter +14.4 million to 152.1 million people (+31% YoY). At the same time, the cost of a monthly subscription has not changed ($6.29);
  • earnings per share of $1.09 – above the consensus forecast of $0.80.

Risks:

  • an increase in the operating loss from streaming services due to the ever-increasing spending on content creation;
  • growth of capital expenditures, including the renovation of amusement parks;
  • negative free cash flow (-$317 million).

In fact, the visible risks do not seem critical or frightening. All expenses are incurred as part of a campaign to expand the subscriber and user base.

Against the background of Netflix streaming, the Disney+ strategy looks quite confident.

The consensus forecast for Disney securities is $145-150.

The daily trading schedule is quite favorable. The MACD indicator is growing in a positive zone and signals a purchase. The Stochastic oscillator develops growth in the positive area and confirms the buy signal.

Send an application

    Full Name
    Phone
    Additional
    ARAVANA Capital management
    17 August 2022
    Бизнес-авиация. Специальное предложение для клиентов ARAVANA Multifamily Office! 

    Частный борт даже при закрытом небе и скидка 25% на перелет и высокая кухня п...

    Macro overview of the current week

    Nvidia and AMD shipments will be limited The United States has banned Nvidia ...

    Calendar of economic events for the week

    Date Time Event Comment 07.09.2022 17-00 МСК Canada Interest Rate Decision Ba...

    New offers in Stalin’s houses

    A rare offer in the legendary sky-scraper near Zaryadye Park Kotelnicheskaya ...