Disney Stock News & Earnings

[Aluminum Falcon]

So much for everyone wanting Chapek out. No shot now

 

[TheDailyMoo]

TWDC Q1 FY 22 earnings report

I will say the analysts lobbed a softball to the plate. Their estimates were laughable in relation to previous quarters. But again this is much needed to move the needle back. Now macro market has to stabilize and we'll see if shorts decide to cover all the way back up. Again last time this happened exactly like this the next day we gave it all back and it started our steep decline.

 

[RivShore]

Can't complain about that report and market reaction but as Moo says we need to see follow thru over the rest of the week.

Here's a good summary from Seeking Alpha:

https://seekingalpha.com/news/37983...mand-giving-boost-content-ramping-up#comments

• Walt Disney (NYSE:DIS) is up 7.6% after hours following its surprise to the upside to start its fiscal 2022.
• On the company's earnings call, CEO Bob Chapek noted that the Parks, Experiences and Products division logged its second-best quarter of all time.
• Attendance trends are still getting stronger, Chief Financial Officer Christine McCarthy amplified. It was up by double digits vs. Q4 at Disneyland and Walt Disney World, and per-capita spending was up 40% year-over-year, amid higher outlays on food, beverages and merchandise.
• That's exceeding pre-pandemic levels now, impressive even as the company continues to manage attendance tied to the COVID-19 pandemic, she notes.
• As for its streaming efforts, the company has signaled for months that its content would be catching up with a surge in late 2022.
• That may be starting early as Chapek touted upcoming releases including its Star Wars Obi-Wan Kenobi series debuting May 25 (45 years to the day after the original Star Wars was released), Ms. Marvel and She-Hulk on the way, as well as the live-action Pinocchio starring Tom Hanks, and Hocus Pocus 2. And for box-office tentpoles, he noted Marvel film Doctor Strange in the Multiverse of Madness kicks off the summer.
• Chapek also seemed to moderate some early comments on film release strategy, where he had typically given some ammo to theaters. "We do not subscribe to the belief that theatrical is the only way to build a Disney franchise," he said, suggesting Encanto is the proof after it became the fastest title to 200 million hours streamed on Disney+ (though the film also pulled a fairly solid $94 million at the box office).
• McCarthy warned of tough comparisons coming in the second quarter (and had previously said that 2022 would mark peak financial losses for Disney+), since all that content coming later in the year calls for heavy spending as well as the strategic decision to withhold more content for the company's own services.
• Asked about pricing power, Chapek referred to content quantity and how that's changing from before. "We certainly have less content than we want," he says, attributing that to COVID-19 production issues, but also underfilling the service at first. But the company's achieving the goal of a new title every week "and in 2023 even higher," he says.
• That content surge will give the impetus to boost the price-value relationship higher, he says. "It's all about content, content, content, and we are bullish on our future content going forward, not only in quality but also in quantity."
• Turning back to Parks, he says park capacity is a complex issue. Disney is seeing really strong domestic demand mitigated somewhat by a "lagged" return from international markets, unsurprising because of the long booking time for global trips.
• Disney is still managing density, mainly in things like parades and fireworks shows. "I suspect that over time we'll start to regain some of the capacity drop-off that we're kinda self-imposing." Meanwhile, "because people spend so much time in the parks, the food and beverage component is a big one."
• Yesterday, the news of Oscar nominations brought some good news for Disney, which drew the second-most nominations among studios, second only to Netflix, led by West Side Story's seven nods.

Someone had a great comment on that article: #1 in parks, #1 in movies, and Top two in streaming services. Disney to $200 and beyond!

Never thought about it like that but very true - DIS is number one or two in every major division.

 

[RivShore]

2nd best parks quarter ever - just incredible!

 

[TheDailyMoo]

2nd best parks quarter ever - just incredible!

For all the cutbacks and price increases it better have been! lol

 

[Aluminum Falcon]

2nd best parks quarter ever - just incredible!

For all the cutbacks and price increases it better have been! lol

So much for underperforming ehh

 

[HIRyeDVC]

Disney is in the long game. Wait till international visitors are allowed to come. Disney stock is ready to take off and Bob Chapek will get all the credit. Just wow on 50% of park visitors buying Genie+ and lighting lane. Park reservations and Genie+ are here to stay. It might be awhile until AP sales return.

 

[jujubiee4]

2nd best parks quarter ever - just incredible!

It is the busiest I have ever seen it (and I have gone 4 out of the past Dec Holiday Seasons).
When i read reports of $LL selling out I knew it would be Cha Ching! For all the people who
do not want to pay for Genie there is the other half that hand over the money.

I still have friends and family from UK and other countries wanting to come but waiting for
things to settle down more.

 

[TheDailyMoo]

Let's keep the champagne corked for now...CPI data comes out tomorrow and it could be a disaster and kill any rally we have in us. 175ish gap wants to get filled but won't unless market decides to play along. Volatility isn't going to go away anytime soon and it could be a rough road ahead. If any of you are savvy enough selling covered calls into high IV will probably be your best play going forward. We're still far away from all time highs and even at the all time high just above 200 we we're still lagging all the major peers and SPY so there's a ton of work to be done to get back there AND push passed it. GL.

 

[ChipnDale79]

it makes me sad, and here's why.

The direction things are going in appear to be great for disney stockholders, they're making money. Awesome, fantastic, thats great for them.

For me as a consumer, it makes me sad. I fell in love with vacationing at Disney because it was so different than everywhere else, now its just like everywhere else. We're middle income Americans that make decent money, but our family is being priced out of these trips now. We can afford them, but i'm not going to break the bank to make it happen. I see our days of disney vacations getting less and less and maybe even going away. This to me is clear that Disney has permission to make more cuts and increase prices even more. With that, it'll push us out. It's sad.

 

[RivShore]

Some less rosy views of the report:

https://www.cnbc.com/video/2022/02/...uarter-but-not-a-game-changer-tom-rogers.html
https://www.cnbc.com/video/2022/02/...-alex-sherman-break-down-disney-earnings.html

 

[Mai Ku Tiki]

it makes me sad, and here's why.

The direction things are going in appear to be great for disney stockholders, they're making money. Awesome, fantastic, thats great for them.

For me as a consumer, it makes me sad. I fell in love with vacationing at Disney because it was so different than everywhere else, now its just like everywhere else. We're middle income Americans that make decent money, but our family is being priced out of these trips now. We can afford them, but i'm not going to break the bank to make it happen. I see our days of disney vacations getting less and less and maybe even going away. This to me is clear that Disney has permission to make more cuts and increase prices even more. With that, it'll push us out. It's sad.

Agree! And I'm both a lifelong fan ('72 1st visit) & a stockholder for 35 yrs.

I started with one share when my son was born.

I did it bc I believed in the Company & wanted to help it deliver its magic for years to come.

Never before have I considered selling it all.
I don't want to invest in a company that is surrendering its business model that had always brought so much joy to so many.

 

[hhisc16]

Stock has rose after the earnings report...but how high will it go?
March is the shareholder meeting, so stock may fluctuate after it?

 

[Aluminum Falcon]

Stock has rose after the earnings report...but how high will it go?
March is the shareholder meeting, so stock may fluctuate after it?

Earnings aside. The Market is crazy right now, I don’t know how anyone could get a real feel for where they’re headed right now.

 

[TheDailyMoo]

it makes me sad, and here's why.

The direction things are going in appear to be great for disney stockholders, they're making money. Awesome, fantastic, thats great for them.

For me as a consumer, it makes me sad. I fell in love with vacationing at Disney because it was so different than everywhere else, now its just like everywhere else. We're middle income Americans that make decent money, but our family is being priced out of these trips now. We can afford them, but i'm not going to break the bank to make it happen. I see our days of disney vacations getting less and less and maybe even going away. This to me is clear that Disney has permission to make more cuts and increase prices even more. With that, it'll push us out. It's sad.

Agree! And I'm both a lifelong fan ('72 1st visit) & a stockholder for 35 yrs.

I started with one share when my son was born.

I did it bc I believed in the Company & wanted to help it deliver its magic for years to come.

Never before have I considered selling it all.
I don't want to invest in a company that is surrendering its business model that had always brought so much joy to so many.

Gentlemen I am with you 100%. But here's the part that I've been harping on...all these cuts and less magic and what have we as shareholders really reaped? If this was Amazon-esque...where we bought the stock for 50 bucks let's say years ago and it's now 3000...well...for that I'd say who cares about theme park magic! But considering right now the price is exactly at the high from right before COVID AND the magic is waning...well that is what makes me sad and not as proud and in love with Disney as I used to be. Also I know if we had a rally type day today we'd probably be in the 160s but that's neither here nor there. We got hit hard by Covid and never truly participated in the V rally starting in April 2020. 200 as an ATH was nice but so many "peers" left us in the dust. Now with the pullback we just got smacked harder than most others. Disney park fans are disappointed in the direction the company has taken and as shareholders we have an additional disappointment. Let's see what the next few months brings for the company and the stock. I hate Disney's leadership decisions and direction but I love the company. I only hope it can right the ship before too many people jump off.

 

[Aluminum Falcon]

Gentlemen I am with you 100%. But here's the part that I've been harping on...all these cuts and less magic and what have we as shareholders really reaped? If this was Amazon-esque...where we bought the stock for 50 bucks let's say years ago and it's now 3000...well...for that I'd say who cares about theme park magic! But considering right now the price is exactly at the high from right before COVID AND the magic is waning...well that is what makes me sad and not as proud and in love with Disney as I used to be. Also I know if we had a rally type day today we'd probably be in the 160s but that's neither here nor there. We got hit hard by Covid and never truly participated in the V rally starting in April 2020. 200 as an ATH was nice but so many "peers" left us in the dust. Now with the pullback we just got smacked harder than most others. Disney park fans are disappointed in the direction the company has taken and as shareholders we have an additional disappointment. Let's see what the next few months brings for the company and the stock. I hate Disney's leadership decisions and direction but I love the company. I only hope it can right the ship before too many people jump off.

400% growth over the last 10 years isn’t good enough?, and I wouldn’t consider them a growth stock in the traditional sense

The company isn’t struggling, the proof is in the “profits”. I understand so many want Disney to fail to “turn them around”, but their leadership has been successful, (I know that word hurts).

Curious what “peers” you’re referring to

 

[Br'er Rabbit is the Best]

400% growth over the last 10 years isn’t good enough?, and I wouldn’t consider them a growth stock in the traditional sense

The company isn’t struggling, the proof is in the “profits”. I understand so many want Disney to fail to “turn them around”, but their leadership has been successful, (I know that word hurts).

Curious what “peers” you’re referring to

Depends on when each person invested.

I’m seeing 267% growth over the last 10 years. S&P over that time is 237% growth. So over the last 10 years it’s done pretty well relative to large caps.

At 5 years it’s 39% for DIS compared to 94% for the S&P which would make it a relatively poor investment.

At 2 years it’s 8% for DIS compared to 34% for the S&P, once again making it a relatively poor investment.

So if you’re someone who didn’t get in until 2015 or so, then you haven’t really had a nice return and no dividends for a couple years now.

 

[Aluminum Falcon]

Depends on when each person invested.

I’m seeing 267% growth over the last 10 years. S&P over that time is 237% growth. So over the last 10 years it’s done pretty well relative to large caps.

At 5 years it’s 39% for DIS compared to 94% for the S&P which would make it a relatively poor investment.

At 2 years it’s 8% for DIS compared to 34% for the S&P, once again making it a relatively poor investment.

So if you’re someone who didn’t get in until 2015 or so, then you haven’t really had a nice return and no dividends for a couple years now.

My mistake

Depends on when each person invested.

I’m seeing 267% growth over the last 10 years. S&P over that time is 237% growth. So over the last 10 years it’s done pretty well relative to large caps.

At 5 years it’s 39% for DIS compared to 94% for the S&P which would make it a relatively poor investment.

At 2 years it’s 8% for DIS compared to 34% for the S&P, once again making it a relatively poor investment.

So if you’re someone who didn’t get in until 2015 or so, then you haven’t really had a nice return and no dividends for a couple years now.

that was an error on my end, it should have said 20 years

 

[RivShore]

And now a major move to real estate...

https://nypost.com/2022/02/16/disney-adults-never-have-to-grow-up-with-storyliving-housing/

 

[Mai Ku Tiki]

For those who don't know the "story" of Celebration.... Buyers Beware!