Walt Disney Company (NYSE: DIS)
On Thursday November 9, 2017, Disney reported their fiscal fourth-quarter earnings after the market closed. Initially, the reaction by investors and traders was negative as the shares dropped pretty fast and furious. Then, at about 5:30 EDT the company had their conference call.
Their CEO, Bob Iger, made some comments which change investors and traders minds immediately. Shares not only retraced their down move, but they actually wound up closing slightly higher than the regular close of the session at 4 p.m.
This bodes well going forward as it seems that any bad news that may have been incorporated in the earnings is now behind the company and they are looking forward with new growth in mind.
This seems evident as the company announced some things that they will be doing which excited the listeners. One of them is competing directly with Netflix streaming services.
They also will be adding new content to address the situation which is growing and concerning to all media and cable providers in that many customers are becoming cord-cutters. The one drawback is that many of these programs that the company will be producing to compete with Netflix cost a little over $200 million dollars apiece.
The Numbers
Disney reported net income of $175 million dollars which equals $1.13 per share. This compares with $1.10 a share in the year-ago period with $1.77 billion dollars of net income. Revenues came in at 12.78 billion dollars, and this is far from last year’s number of 13.14 billion dollars. Analyst had been expecting $13.3 billion and $1.15 per share on earnings.
The company did not indicate any change in the dividend which is currently $1.56 per share or 1.52% annually. Shares closed the regular trading session up a $1.50 closing at $102.68. However shares found themselves +$.83 cents higher in the after market closing at $103.51.
Company And Analyst Comments
Robin Diedrich, an analyst at Edward Jones & Co. said this about the Company,
“They reminded investors that they have these great brands and they’re putting their resources behind them, they’re addressing this head on. The longer-term investor will be comfortable with a couple of years of investing, and a flatish type of earnings.”
Bob Iger, CEO supported his Company by stating;
“No other company in entertainment today is better equipped to meet the challenges of a changing world or better positioned for continued growth thanks to our collection of brands.”
Disney Charts
The above price chart shows the daily price action going back about 6 months. Shares will clearly be opening at right near the resistance level or just higher when they open on Friday morning.
The above price chart shows the intraday action of the left and the aftermarket session on the right. It is clear how the shares sold off early, found a bottom and then rallied higher closing above the price at 4 pm.
Company Profile
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The companys Media Networks segment operates cable programming services, including the ESPN, Disney channels, and Freeform networks; broadcast businesses, which include the ABC TV Network and eight owned television stations; radio businesses consisting of the ESPN Radio Network; and the Radio Disney network.
It also produces and sells original live-action and animated television programming to first-run syndication and other television markets, as well as subscription video on demand services and in home entertainment formats, such as DVD, Blu-Ray, and iTunes. Its Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California.
This segment also operates Disney Resort & Spa in Hawaii, Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and manages Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan.
The companys Studio Entertainment segment produces and acquires live-action and animated motion pictures for distribution in the theatrical, home entertainment, and television markets primarily under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm, and Touchstone banners.
This segment also produces stage plays and musical recordings; licenses and produces live entertainment events; and provides visual and audio effects, and other post-production services.
Its Consumer Products & Interactive Media segment licenses its trade names, characters, and visual and literary properties; develops and publishes games for mobile platforms; and sells its products through The Disney Store, DisneyStore.com, and MarvelStore.com, as well as directly to retailers. The company was founded in 1923 and is based in Burbank, California.-YahooFinance
