Walt Disney posted an estimate-beating second quarter with earnings per share of $1.61 versus an estimated $1.58, and sales of $14.92 billion versus an estimated $14.34 billion.
Since Disney’s acquisition of Twenty-First Century Fox, this is the first quarter documenting the contributions of Fox with a reported business total of $373 million and operating income of $25 million.
The success is all the more conspicuous with the record-breaking achievement of ‘Avengers: Endgame,’ which will start streaming when Disney launches its own streaming service, Disney+, later this year.
Disney’s acquisition of Fox also includes a 30% stake in the streaming service Hulu, for a total interest of 60%. Disney said it recorded a one-time gain of $4.9 billion as a result of re-measuring its initial 30% stake to fair value.
Other key highlights of the quarter include a 15% increase in direct-to-consumer and international segment revenue to $955 million, but the quarter also saw its segment operating loss jump from $188 million to $393 million. The latter was due to Disney’s ongoing investment in ESPN+, launching expenses of Disney+ coupled with loss from the consolidation of Hulu and higher losses from streaming technology services.
According to Disney's chairman and CEO, Robert Iger, the company is thrilled with the record-breaking success of ‘Avengers: Endgame’ and the film will be streamed exclusively on Disney+ starting December 11th.
Expect a price pull-back in the near future.
The 10-day RSI Indicator for DIS moved out of overbought territory on October 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
DIS broke above its upper Bollinger Band on September 16, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on October 15, 2024. You may want to consider a long position or call options on DIS as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DIS just turned positive on October 16, 2024. Looking at past instances where DIS's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
DIS moved above its 50-day moving average on September 16, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DIS crossed bullishly above the 50-day moving average on September 20, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 161 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.213) is normal, around the industry mean (5.952). P/E Ratio (74.558) is within average values for comparable stocks, (90.982). Projected Growth (PEG Ratio) (0.871) is also within normal values, averaging (2.987). Dividend Yield (0.002) settles around the average of (0.039) among similar stocks. P/S Ratio (2.503) is also within normal values, averaging (30.667).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DIS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment