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Walt Disney Q1 Results Beat Estimates on Record Revenue

Walt Disney (DIS) delivered better-than-expected Fiscal Q1 2022 results characterized by record revenue and operating income at domestic parks and resorts. DIS shares rose 3.33% to close at $147.23 on February 9.

Walt Disney is an entertainment and media company that produces and distributes television and motion picture content. It operates theme parks, resorts, cruise lines and offers streaming services as well.

Revenue in the quarter was up 34% year-over-year to $21.82 billion, beating consensus estimates of $18.78 billion. Revenue in Disney Media and Entertainment Distribution was up 15% year-over-year to $14.59 billion as Disney Parks, Experiences, and Products registered a 100% revenue increase to $7.23 billion. The average revenue per paid subscriber of Disney+ increased to $6.68 from $5.80.

Diluted earnings per share increased to $1.06 from $0.32 in the same quarter last year, easily beating consensus estimates of $0.64. Net income from continuing operations increased 100% to $1.15 billion.

The solid Fiscal Q1 results come at the backdrop of a new franchise launch with Encanto. Disney also registered a significant increase in total subscriptions across its streaming portfolio to 196.4 million.

Walt Disney has acknowledged that COVID-19 continues to impact its operations, mostly at the Theme Parks, Experiences, and Products segments. The pandemic has also affected the production and availability of content, including delays of key live sports programming.

Stock Rating

Needham analyst Laura Martin has reiterated a Hold rating on Walt Disney stock.

Consensus among analysts is a Moderate Buy based on 15 Buys and 7 Holds. The average Walt Disney price target of $194.50 implies 32.11% upside potential to current levels.

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