The Walt Disney Company posted second-quarter fiscal 2022 adjusted earnings, which rose +36.7% from the year-ago quarter to $1.08 per share. However, the figure missed the Zacks Consensus Estimate by -10%.
The entertainment giant’s revenues surged + 23% year over year to $19.24 billion but missed the consensus mark by 4.96%.
Revenues from Media and Entertainment Distribution (70.8% of revenues) rose +9.5% year over year to $13.62 billion.
Linear Networks segment registered a 5.5% year over year increase to $7.11 billion. Direct-to-Consumer revenues climbed 22.6% year over year to $4.9 billion. Content Sales/Licensing and Other revenues, however, fell -2.6% year over year to $1.86 billion.
Parks, Experiences and Products revenues (34.6% of revenues) jumped +109.6% year over year to $6.65 billion.
The company’s ESPN+ platform had 22.3 million paid subscribers at the end of the fiscal second quarter compared with 13.8 million at the end of the year-ago quarter.
Disney+ had 137.7 million paid subscribers as of Apr 2, 2022, rising from the year-ago quarter’s 103.6 million. The figure beat the Zacks Consensus Estimate for paid subscribers of 135.2 million.
Looking ahead, , Disney expects continued investments in content for third-quarter fiscal 2022, which push programming and production costs up at Media and Entertainment Distribution.
But Disney also indicated that closures of theme parks in Asia due to COVID-19 could reduce operating income by up to $350 million in the fiscal third quarter.
DIS saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 11, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 RSI Indicator entered the oversold zone -- be on the watch for DIS's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 302 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 Aroon Indicator entered an Uptrend today. In of 185 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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 (1.640) is normal, around the industry mean (4.224). P/E Ratio (39.062) is within average values for comparable stocks, (71.973). Projected Growth (PEG Ratio) (1.028) is also within normal values, averaging (2.658). DIS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.057). P/S Ratio (1.845) is also within normal values, averaging (111.509).
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.
|NWSA - DIS|
|NWS - DIS|
|PARAA - DIS|
|NFLX - DIS|
|PARA - DIS|