Disney Reports Earnings Beat but Faces Cash Flow Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy DIS?
Source: seekingalpha
Walt Disney Co's stock fell 5% after the company reported earnings that surpassed expectations but revealed a negative cash flow of $2.28 billion.
Despite reporting $26 billion in revenue and an adjusted EPS of $1.63, the market reacted negatively due to a lukewarm Q2 forecast and concerns over leadership changes. The appointment of new executives aims to revitalize the company's content strategy, but investor sentiment remains cautious amid ongoing challenges in the streaming and linear networks segments.
The mixed market reaction highlights the complexities Disney faces as it navigates growth in its streaming business while addressing cash flow issues. The company reaffirmed its commitment to returning value to shareholders, planning $9.7 billion in buybacks and dividends, which may help restore investor confidence in the long term.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 105.440
Low
123.00
Averages
137.29
High
152.00
Current: 105.440
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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