Disney (DIS, $112.66) beat earnings expectation, but portends potential (temporary) side-effect of streaming ambition
Walt Disney’s first fiscal quarter earnings beat estimates. But, the entertainment giant expressed caution against a possible dent in profit as the company launches its own streaming service Disney+ and therefore potentially lose some of its licensing revenues.
The company’s earnings during the three months ending December came in at $1.84 per share, outpacing analysts’ expected $1.55 a share. They were, however, -3% lower compared to the year-ago quarter.
Revenue at $15.303 billion was higher than analysts’ estimate of $15.1 billion.
In April, Disney will launch its streaming platform Disney+ which will show movies and its original content. Due to its streaming business, the company estimates a probable reduction of $150 million from its operating income over the year as it anticipates losing out on licensing fees that it would've received from other providers. Also, streaming does have substantial costs in programming and technology. The company, however, seems to believe that by investing in new endeavors like Disney+ would help it achieve solid growth in the long-term, as indicated by CEO Bob Iger .
DIS's RSI Indicator sits in oversold zone for 4 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 uptrend is expected.
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Notable companies
The most notable companies in this group are Netflix (NASDAQ:NFLX), Walt Disney Company (The) (NYSE:DIS), Roku (NASDAQ:ROKU), Paramount Global (NASDAQ:PARA), iQIYI (NASDAQ:IQ), HUYA (NYSE:HUYA), AMC Entertainment Holdings (NYSE:AMC).
Industry description
Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.
Market Cap
The average market capitalization across the Movies/Entertainment Industry is 9.41B. The market cap for tickers in the group ranges from 134 to 262.83B. NFLX holds the highest valuation in this group at 262.83B. The lowest valued company is LRDG at 134.
High and low price notable news
The average weekly price growth across all stocks in the Movies/Entertainment Industry was 3%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 9%. LDSN experienced the highest price growth at 380%, while NETWF experienced the biggest fall at -28%.
Volume
The average weekly volume growth across all stocks in the Movies/Entertainment Industry was -11%. For the same stocks of the Industry, the average monthly volume growth was -14% and the average quarterly volume growth was 58%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 61
Price Growth Rating: 56
SMR Rating: 82
Profit Risk Rating: 86
Seasonality Score: 0 (-100 ... +100)