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.
The RSI Indicator for DIS moved out of oversold territory on May 31, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In of the 31 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on June 06, 2023. You may want to consider a long position or call options on DIS as a result. In of 97 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 June 05, 2023. 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
DIS moved below its 50-day moving average on May 11, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DIS crossed bearishly below the 50-day moving average on May 16, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DIS entered a downward trend on June 07, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DIS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.728) is normal, around the industry mean (4.350). P/E Ratio (41.152) is within average values for comparable stocks, (74.440). Projected Growth (PEG Ratio) (0.758) is also within normal values, averaging (3.176). DIS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.057). P/S Ratio (1.944) is also within normal values, averaging (111.182).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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 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 89, 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
A.I.dvisor indicates that over the last year, DIS has been loosely correlated with NWSA. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if DIS jumps, then NWSA could also see price increases.
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