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Many analysts boast
Walt Disney
of the
The latest report on the results is a victory for the media giant.
Shares of Walt Disney (ticker: DIS) were down on Thursday, but their losses were offset by a more general stock meltdown.
The story back. Disney shares have grown about 22% since the beginning of the year and have risen 31% in the last 12 months, even with today's decline. It could have worked well for some Barron readers, as we had recommended the stock at the end of 2018. Disney has landed gains with its box office franchise Avengers, but investors are more interested in the company's streaming service, Disney +. Some analysts believe that it will be a serious threat to
Netflix
(NFLX) and others, and this could bring even more banners continuously to its lineup.
Read our recent cover story: How Bob Iger is looking to do more magic at Disney
Nevertheless, Disney's shares have not always been the happiest place for investors. The company delivered better than expected earnings when it released its report earlier this year, but that came after a lower forecast. Nevertheless, most investors have been willing to wait to learn more about Disney +.
What's up. Late Wednesday, Disney said it had earned $ 1.61 per share for a business turnover of $ 14.92 billion during the second quarter of its fiscal year. Analysts were looking for a profit of 1.57 USD per share for a turnover of 14.53 billion USD. This is Disney's first quarter since its $ 70 billion acquisition of 21st Century Fox's entertainment assets.
The "Disney Parks Experiences and Products" unit, the company's largest division in terms of revenues, saw its revenue increase by 5%, while cable network sales increased by 2% , like those of its broadcasting unit. The growth of direct sales to consumers and international was 15% during the quarter.
Look to the front. Disney's results are good news for the media giant. The results, better than expected, have fueled the recent dynamic of Avengers: End of the gamebreaking records at the box office.
The company has provided more details on its direct sales activities to consumers. Some investors may be worried that the losses will rise a little in the next quarter – although Disney has telegraphed this in advance and that is not a concern when looking at the dynamics of the sector. The profile of the company's debt seems likely to remain about the same, which could have disappointed some investors in the hope of a return to redemptions. But overall, Disney seemed to generate a good quarter in all segments.
Overall, the analysts were satisfied with the report. Bulls were the most vocal today.
CFRA Tuna Amobi writes that stocks deserve their premium, given the huge growth opportunities available. Amobi also said that the company should have plenty of opportunities to reduce its debt – a point of contention since the acquisition of Fox – because of its high sales.
Macquarie's Tim Nollen says the "new Disney [is] a good start "with results in sight and results that" beat at once "and a strong performance in all divisions.
Morgan Stanley
of the
Benjamin Swinburne sees a "clear path to deleveraging and seeking synergies" with the assets of the Fox currently appearing in Disney's list.
UBS
of the
John Hodulik writes that although the forecast for the third quarter was mixed, he was satisfied with the last quarter. Management reiterated its optimistic position on its ability to derive value from Fox's assets, and there is "no end game for the parks". [division] momentum, "he adds.
The Disney action is down 0.8% to $ 133.95 recently.
Write to Teresa Rivas at [email protected]
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