Walt Disney ($DIS) Stock | ESPN Worries Outweigh Record Earnings


Walt Disney Co. (NYSE: DIS)



Walt Disney Earnings

Today after the market closed, Walt Disney (DIS) announced earnings that has set a record for the highest in companies history. They came out with $15.24 billion in revenue compared to $13.39 billion for the same period a year ago and compared to analyst estimates of $14.79 billion. This is being driven by the new franchise hit “Star Wars: The Force Awakens” which pumped up their movie business 46% to 2.72 billion. They also reported $1.63 on earnings per share compared to analyst estimates of $1.45 per share, however, what really caught investors attention is their cable network division that is under pressure with so many people switching over to streaming TV. Currently analysts have an average price target of $112.97.


CEO Comments

“I am thrilled to announce that our Q1 performance was the greatest single quarter in the history of The Walt Disney Company and a phenomenal start to FY ’16. Revenue was up 14%, net income was up 32% and adjusted earnings per share were up 28%, to $1.63 which is our highest quarterly EPS ever and is also our 10th consecutive quarter of double digit EPS growth. . .¬†With the incredible success of Star Wars: The Force Awakens, our studio delivered $1 billion in quarterly operating income for the first time in history. Our parks and resorts also made history, with nearly $1 billion in operating income. And our consumer products and Interactive business set another record, with $860 million in OI.”¬†(SeekingAlpha)


DIS Technical

DIS Chart
As you can see from the chart, shares of DIS took a dip after they released earnings but slowly came back after reaching lows of $$85.68 in the post market session. Shares are set to gap down this morning despite futures being up nearly a percent. Some key levels to keep an eye on would be the lows from yesterday at $89.04 and the day before at $$89.51 for potential resistance levels while support should be met at the $87.50 range. Looking back on the daily you can see that shares have been under a ton of pressure since November where it formed a double top with previous highs in August at the $122 range. The market over all has remained under pressure with a lot of the big names down on the year. DIS should find some support around the $90 level based on the flash crash lows at the end of August. Below that were looking at the $80 and $78.67 level where the 200-day is sitting on the weekly chart. Some key resistance levels will be at the $96 and $98 price levels with the big $100 level to follow. Currently analysts have an average price target of $112.97.


Company Profile

The Walt Disney Co. together with its subsidiaries and affiliates is a diversified international family entertainment and media enterprise. It operates through five business segments: Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Media Networks segment is comprised of a domestic broadcast television network, television production and distribution operations, domestic television stations, international and domestic cable networks, domestic broadcast radio networks and stations, and publishing and digital operations. This segment operates through consolidated subsidiaries, the ESPN, Disney Channels Worldwide, ABC Family, SOAPnet and UTV/Bindass networks. This segment also operates ABC Television Network and television stations, as well as the ESPN Radio Network, Radio Disney Network and owns and operates radio stations. Additionally, it operates ABC, ESPN, ABC Family and SOAPnet-branded internet businesses. The Parks & Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. Its Walt Disney World Resort includes four theme parks-the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom; resort hotels, retail, dining, and entertainment complex, a sports complex, conference centers, campgrounds, water parks, and other recreational facilities. The segment’s Disneyland Resort includes two theme parks-Disneyland and Disney California Adventure; resort hotels, and a retail, dining and entertainment complex. This segment’s Walt Disney Imagineering unit designs and develops theme park concepts and attractions, as well as resort properties. The Studio Entertainment segment produces and acquires live-action and animated motion pictures for worldwide distribution to the theatrical, home entertainment, and television markets. This segment distributes these products through its own distribution and marketing companies in the United States and through independent companies and joint ventures in foreign markets primarily under the Walt Disney Pictures, Touchstone Pictures, Pixar, Marvel, and Disneynature banners. The Consumer Products segment licenses trade names, characters and visual and literary properties to various manufacturers, retailers, show promoters, and publishers throughout the world. This segment also engages in retail and online distribution of products through The Disney Store and DisneyStore.com. It also publishes entertainment and educational books and magazines and comic books for children and families and operates English language learning centers in China. The Interactive Media segment creates and delivers branded entertainment and lifestyle content across interactive media platforms. Its primary operating businesses are Games which produces and distributes console, online and mobile games; and Online, which develops branded online services in the United States and internationally. The Walt Disney was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA.