Walt Disney (DIS) posts a net income of US$159 million in Q4

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Walt Disney (DIS) posts a net income of US$159 million in Q4

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 Walt Disney (DIS) posts a net income of US$159 million in Q4
Image source: chrisdorney, Shutterstock.com

Highlights

  • Disney+ added 2.1 million customers in the quarter, well below analyst projection.

  • Profits from its theme park division also fell short of analyst projections, although all its parks were open for the first time since the covid outbreak.

  • Disney is expected to premiere its movies "Jungle Cruise," "Shang-Chi and the Legend of the Ten Rings," and a new "Home Alone" movie on its streaming platform on Friday.

Walt Disney Co (NYSE: DIS) posted a fourth-quarter net income of US$159 million on Wednesday after registering small gains in Disney+ subscriptions.

The results, which missed Wall Street expectations, drove the stocks down nearly 5% in after-hours.

The company had launched the streaming video service Disney+ to take on Netflix.

On a conference call with analysts, CEO Bob Chapek reiterated Disney’s previous forecast of 230 million to 260 million Disney+ subscribers by 2024.

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Fourth-Quarter Highlights

Disney’s revenue rose to US$18.53 billion in the quarter from US$14.71 billion a year ago, missing analysts' estimates. Its net income rose to US$159 million, or 9 cents per share, from a loss of US$710 million, or 39 cents per share, in the corresponding period a year earlier.

In addition, according to Factset, Disney+ added 2.1 million customers in the quarter, well below analyst projection of 10.2 million subscribers. It had 118.1 million paid subscribers in early October.

Profits from its theme park division also fell short of analyst projections, although all its parks were open for the first time since the covid outbreak.

The company is banking on new programs for pre-schoolers to boost streaming subscribers in 2022.

In addition, its theme parks are expected to benefit from the reopening of US borders to vaccinated international travelers, although it might not be substantial.

Disney's streaming media division reported an operating loss of US$630 million in the quarter.

Also, its diluted EPS of 37 cents was below the analyst forecast of 51 cents, according to Refinitiv. Theme-park division revenue of US$640 million also fell short of expectations of US$942 million.

Disney is expected to premiere its movies "Jungle Cruise," "Shang-Chi and the Legend of the Ten Rings," and a new "Home Alone" movie on its streaming platform on Friday.

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Disney’s revenue rose to US$18.53 billion in the quarter from US$14.71 billion a year ago, missing analysts' estimates.

Source: Pixabay

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Stock Performance

The DIS stock fell about 7% year-to-date. It was trading at US$166.84, down 4.36%, in after-hours trading at 7:59 pm ET. The stock’s 52-week highest and lowest prices were US$203.02 and US$134.10, respectively. Furthermore, its P/E ratio is 285.98, the forward P/E one year is 70.33, and the EPS is US$0.61. Disney’s current market cap is about US$316.99 billion.

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