Alexandra Canal’s Post

The #WaltDisney Company (NYSE:DIS) analysts will be looking for year-over-year increases in both revenue and earnings per share (EPS) when the entertainment giant reports its fourth quarter and full year 2023 financial results after the close on November 8.  The analyst consensus forecast is for 4Q EPS to surge 133% year over year to $0.70 per share on a 6% anticipated rise in revenue to $21.33 billion, according to Zacks Investment Research.   During 3Q, Disney posted better-than-expected EPS but missed slightly on revenue.  Notably, the company revealed that its Disney+ subscriber numbers for the three months ending July 1, declined 7.4% from the previous quarter to 146.1 million, a larger loss than Wall Street anticipated.  At the time, Disney said it would raise the price on its ad-free streaming tier in October and that it would crack down on password sharing just as streaming rival Netflix did.   More at #Proactive #ProactiveInvestors #NYSE #DIS http://ow.ly/47H2104ZzBq

Disney beat quarterly earnings estimates and raised its guidance as it saw progress in its effort to cut costs. Revenue was about flat at $23.55 billion, compared with $23.51 billion in the year-ago quarter. Disney’s direct-to-consumer unit reported a $138 million operating loss in the quarter. Including the performance at ESPN+, losses for all its streaming businesses narrowed to $216 million, from $1.05 billion in the prior-year period. Disney+ core subscribers shrank by 1.3 million from the prior quarter due to price increases, but the company saw a rise in average revenue per user because of subscription cost hikes. #streaming #disney #espn

Supply and demand are straightforward concepts, but they should be more often noticed strategically. The sheer volume of content available today has created a supply glut that far outstrips available attention. This is true across multiple industries, including retail media and retail marketplaces. In a consumer-driven economy, there are only so many dollars. Adding supply without requisite demand will erode margins and destroy invested capital. Disney CEO Bob Iger recently admitted that the company invested too much in streaming. This is an example of the perils of ignoring the laws of supply and demand. As we move forward, we must remember these principles to ensure sustainable growth and profitability. https://lnkd.in/eQp9s468

So many technology transformations are made "Just in Case"... How could one of the largest media companies in the world not go "All In" on streaming? As John Andrews points out, supply and demand is critical. Even more critical is the value proposition. With Cable, people got 200+Channels (more is better?) but over time, most were not watched and it became expensive waste! "Cutting Cable" was about eliminating that waste. BUT the value proposition for Cable (back in the day) was that they were a content aggregator and THAT NEVER CHANGED. It is the same phenomena in DTC vs Retail. The seller wants direct because they want more margin and they think their "Brand" is a divine right from god. BUT the consumer has proven time and time again, they like Amazon and Walmart! Smart aggregators will ultimately win the on-demand wars...

Finally, it looks as though Disney’s streaming service has turned a profit for the first time in its history. However, the company expects weaker results for this business segment for the current quarter, which has caused the stock to fall 10% in early trading. -> 1. Background 🔔 A key priority for the entertainment giant was to achieve sustained profitability in streaming. This is because cable TV has continued to decline in recent years. CEO Bob Iger has made a strong impression with his turnaround plan, leading investors to have a bullish look at the stock in recent months. The company also scored a fresh win off of their high-profile proxy fight with activist investor Nelson Peltz. -> 2. Current News 📰 In Disney’s second quarter, their direct-to-consumer (DTC) segment of the entertainment business, which includes both Disney+ and Hulu, posted an operating income of $47 million, barely squeaking in their first profit compared to their loss of $587 million over the prior-year period. However, it looks like that profit will not last long as Disney expects their third quarter to be red, driven by their loss of the Indian brand Disney+ Hotstar. Additionally, other Disney streaming services, such as ESPN+, reported a $18 million loss versus the $659 million loss over the year-earlier period. Not too bad. Even with expected losses coming in for the third quarter, Disney expects profitability across all of its streaming platforms by the fourth quarter of this year. Still, investors were unhappy with the Disney+ Hotstar news, plunging the stock down. -> 3. Other metrics 📈 Disney beat its Q2 adjusted earnings of $1.21 a share compared to analyst predictions of $1.10. This is much higher than the $0.93 reported by Disney during Q2 of 2023. Revenue came out to be $22.1 billion, which met expectations and is a slight increase above the $21.82 billion the company reported in the year-ago period. Disney also surprisingly raised its guidance for its full-year adjusted earnings growth to 25%, which is up from the prior 20%. #disney #disney+

**Disney's Mixed Earnings: Streaming Shines, Traditional TV Falters** Disney (#DIS) took a hit in the stock market after posting mixed earnings results. While its streaming entertainment division surprised investors with a profit, the company's traditional TV business and box office performance fell short of expectations. **Streaming Entertainment: A Bright Spot Amidst Challenges** Disney's streaming platform, Disney+, continues to be a success story for the company. The platform has gained significant traction, attracting millions of subscribers and generating impressive revenue. This positive performance demonstrates the potential for growth in the streaming industry. **Traditional TV Business: Facing Headwinds** On the other hand, Disney's traditional TV business experienced a slump, reflecting the broader challenges faced by media companies in the face of changing consumer preferences and cord-cutting trends. The decline in advertising revenue and viewership weighed down this segment's financial performance. **Lackluster Box Office Performance: Impact on Shares** In addition to the struggles in its TV business, Disney's box office results were lackluster, impacting investor sentiment. The pandemic-induced closures and reduced moviegoer attendance have affected the company's ability to generate significant revenue from its theatrical releases. **Investment Implications: Seizing Opportunities Amidst Challenges** Despite these challenges, Disney's streaming success and strong brand position reveal opportunities for investors. As the company adapts to changes in the media landscape, it can leverage its content library and invest in original productions to maintain its competitive edge. Investors focused on long-term growth and capitalizing on the streaming revolution may see this dip in Disney's shares as an opportunity to enter or add to their positions. Careful evaluation of Disney's overall financial health and understanding its strategy in navigating the evolving media landscape is crucial for making informed investment decisions. #HSA #Investing #Healthcare #Health #Family #Wellness 💪💰😊 *Disclaimer: The above information is for educational purposes only and should not be considered as financial advice. Investors should conduct thorough research and consult with a professional advisor before making any investment decisions.*

Highlights from the Walt Disney Company's fiscal first-quarter earnigns report: - The company hiked its guidance, and now expects fiscal 2024 earnings per share of about $4.60, which would be at least 20% higher than 2023. - Disney said it is on pace to meet or exceed its goal of cutting costs by at least $7.5 billion by the end of fiscal 2024. - Disney’s direct-to-consumer unit reported a $138 million operating loss in the quarter. Including the performance at ESPN+, losses for all its streaming businesses narrowed to $216 million, from $1.05 billion in the prior-year period. -Disney+ core subscribers shrank by 1.3 million from the prior quarter due to price increases, but the company saw a rise in average revenue per user because of those subscription cost hikes. More to come after the 1:30 pm PT / 4:30 pm ET earnings call. Stay tuned! https://lnkd.in/gVyUGdFV

On August 10, Walt Disney’s CEO Bob Iger has acknowledged the prevailing challenges in the entertainment industry while underlining the company’s dedication to cost reduction and creative innovation. Despite revealing some weak points in quarterly results, Disney’s stock surged by nearly 3 percent in after-hours trading... Read More At:- https://lnkd.in/ddzwH9QU The Walt Disney Company #BobIger #entertainment #trading #news #NewsUpdate #costreduction #news #media #NewsFlash #IBWNews #alltopnews #alltypesofnews #NewsUpdate #Todaysnews #NewsUpdate #dailynews #newsfeed #trendingnews #LatestNews #BreakingNews #Englishnews

Not quite the last-minute M&A action the financial news promised us, but The Walt Disney Company have decided to purchase the remaining 33% of Hulu from Comcast. Price issues aside, the question I am asking myself is simple. Will Disney drop the Hulu name and rebrand it as Disney+ to help with its efforts to build up the platform? (Via Financial Times) #disney #disneyplus #mergersndacquisitions #comcast #brand #streamingplatforms

Skydance, Paramount Argue The "Streaming Multiple" Is Not Dead Yet Netflix’s current trailing price-to-earnings (P/E) ratio is 39.53 and its forward-looking P/E ratio (based on one year of projections) is 34.60. At the time of the launch of Disney+ in Q4 2019, its trailing P/E ratio was near 100 and in previous years had reached over 400 on a couple of occasions. The price-to-earnings ratio is calculated by dividing the market value price per share by the company's earnings per share (EPS). Back then, Netflix was the standard-bearer for “the streaming multiple”, the bullish valuation of a P/E ratio promised by Wall Street in exchange for a promising roadmap for streaming subscriber growth. Wall Street rewarded Netflix’s stock price with high demand and a high price against low past and projected earnings because Netflix was consistently projecting long-term subscriber growth. At the end of 2021 and in early 2022, that promise reversed course: Those companies that had failed to deliver their projected streaming growth—including Netflix but excluding Apple—saw their stock prices drop steeply. Netflix, in particular, saw its stock lose 70% of its value over a four-month period. The message from Wall Street was clear: Ambitious growth projections no longer mattered and profitability was the new proof in the pudding. Today, recent signals have emerged that Disney and Warner Bros. Discovery believe that the streaming multiple can be revived from the dead. Perhaps even more surprising, the multiple seems priced into the deal terms for the complicated $8 billion merger between Skydance and Paramount. [Click on the link in the comments below to read the full essay] #disney #skydance #paramount #merger ✅Key Takeaway✅ If investors are not buying sales pitches for a "streaming multiple" for legacy media businesses—as Disney and Warner Bros. Discovery are painfully learning—why is that multiple baked into Paramount’s acquisition price for Skydance?