I hope no one minds if I start a quarterly update of Disney on this board, like I do with Facebook. Disney is another company I strongly believe in the long term prospects of and reported their earnings this afternoon after the market closed.
On the surface everything looks good. Real good. Via CNBC:
Disney reported reported quarterly earnings and revenue Tuesday that handily topped analysts’ expectations, as sales in its film unit blew past estimates.
The media giant posted fiscal-first-quarter earnings of $1.63 per share on $15.24 billion in revenue.
Its studio sales came in at $2.7 billion, topping estimates of $2.32 billion, according to StreetAccount. Revenue of $6.3 billion for its media and networks unit also beat expectations.
Analysts had expected Disney (DIS) to report earnings of about $1.45 a share on $14.75 billion in revenue, according to a consensus estimate from Thomson Reuters.
Read the whole thing at http://www.msn.com/en-us/money/companies/disneys-earnings-an…
Revenue was up in every single of the company’s four main segments:
+8% in Media Networks
+9% in Parks
+46% in Studio Entertainment (Star Wars!)
+8% in Consumer Products
Operating Income was up in three of the four segments:
-6% in Media Networks
+22% in Parks
+86% in Studio Entertainment (Star Wars!!!)
+23% in Consumer Products
Of course, the focus is all on ESPN, so as of right now, shares are down in AH trading because of the decrease in income in the media networks segment. Here are some other numbers I look at:
Revenue (billions) Q1 Q2 Q3 Q4
2013 11.341 10.554 11.578 11.568
2014 12.309 11.649 12.466 12.389
2015 13.391 12.461 13.101 13.512
2016 15.244
EPS (non-GAAP) Q1 Q2 Q3 Q4
2013 0.79 0.79 1.03 0.77
2014 1.04 1.11 1.28 0.89
2015 1.27 1.23 1.45 1.20
2016 1.63
Cash Flow (billions) Q1 Q2 Q3 Q4
2013 0.559 1.586 2.723 1.748
2014 0.554 1.826 2.047 2.042
2015 0.857 2.011 1.652 2.124
2016 0.956
Current (2016 Q1 Earnings):
Revenue Growth (billions)
2015 Q1 TTM Revenue = 49.895
2016 Q1 TTM Revenue = 54.318
Year Over Year Revenue Growth = 8.85%, previous quarter’s Rev Growth = 7.48%
Non-GAAP EPS Growth
2015 Q1 TTM Earnings = 4.55
2016 Q1 TTM Earnings = 5.51
Year Over Year EPS Growth = 21.1%, previous Q EPS Growth = 19.2%
P/E = (Check Current Price) 92.32/5.51 = 16.75
1YPEG = 16.75/21.1 = 0.79
Conclusion: This is by far the cheapest I’ve ever seen Disney stock. Meanwhile, both revenue and earnings growth continue to accelerate. Because media entertainment is their largest business segment, everyone remains focused on ESPN expenses and the possible threat of cord cutters. They seem to lose sight of the fact that the other business segment are growing so strongly that they are quickly closing that gap.
Sure studio entertainment was up because of Star Wars, but that was not a one-time event. Five more Star Wars movies are planned in the coming years and you can be sure more will be coming after that.
Matt
MasterCard (MA) Ticker Guide
Long DIS
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx