Mass media and entertainment conglomerate The Walt Disney Company (NYSE: DIS), popularly known as Disney, has reported weaker-than-expected results for the fiscal second quarter ended April 2, 2022.
Following the earnings release, shares of the company declined 3.3% to close at $101.75 in the extended trading session.
Revenue & Earnings
Disney’s revenues for the quarter came in at $19.25 billion, up 23% year-over-year. However, the figure failed to surpass the consensus estimate of $20.1 billion.
Media and Entertainment Distribution, and Parks, the key revenue segments, rose 9% and 109.6%, respectively, and contributed to the overall growth in revenues.
Earnings per share (EPS) for the quarter rose 37% year-over-year to $1.08 but missed the consensus estimate of $1.19 per share.
Other Operating Metrics
Total subscribers of the company’s flagship streaming platform, Disney+, recorded a year-over-year increase of 33% to 137.7 million. Meanwhile, the average monthly revenue per paid subscriber improved 9% year-over-year to $4.35.
The company’s free cash flow stood at $686 million, up 10% year-over-year.
Management Commentary
The CEO of Disney, Bob Chapek, said, “Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own.
“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
Stock Rating
Consensus among analysts is a Strong Buy based on 13 Buys and three Hold. Disney’s average price target of $177.71 implies upside potential of 69% from current levels. Shares have declined 40.8% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Disney’s performance this quarter.
According to the tool, the Disney website recorded a 31.97% monthly rise in global visits in April, compared to the same period last year. Moreover, the footfall on the company’s website has grown 17.56% year-to-date, compared to the previous year.
The rise in the company’s website visits supports the year-over-year increase in its revenue, earnings and subscribers. This shows that TipRanks’ website traffic tool helps in making reliable predictions about a company’s performance.
Conclusion
Disney’s strong fundamentals, growth in key revenue segments and profitability give the company a strong footing to further enhance its operations.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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