Disney Experiences Division Achieves Record Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: CNBC
- Record Revenue: Disney's Experiences division achieved over $10 billion in revenue for the first fiscal quarter of 2024, with operating income reaching $3.3 billion, a 6% increase year-over-year, highlighting a robust recovery post-pandemic and solidifying the segment's critical role in overall company profits.
- Future Growth Outlook: Executives forecast high-single-digit growth in operating income for the segment by fiscal 2026, indicating confidence in expanding theme parks and cruise operations, particularly as the global tourism market gradually recovers.
- Strategic Investment Plan: Disney is executing a 10-year, $60 billion investment initiative aimed at expanding its theme parks and cruise business, including the upcoming opening of the World of Frozen at Disneyland Paris, which is expected to enhance brand appeal and market share.
- International Market Expansion: Despite challenges from declining international visitors, revenue from Disney's international theme parks and experiences grew 7% in the first quarter to $1.75 billion, demonstrating strong global appeal, particularly with the development of the new Abu Dhabi park set to enhance its international competitiveness.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIS is 137.29 USD with a low forecast of 123.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 112.800
Low
123.00
Averages
137.29
High
152.00
Current: 112.800
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.
Disney Experiences Division Achieves Record Revenue
- Record Revenue: Disney's Experiences division achieved over $10 billion in revenue for the first fiscal quarter of 2023, representing 38% of total company revenue and contributing 71% of operating income, highlighting its critical role in overall profitability.
- Operating Income Growth: The division's operating income reached $3.3 billion, a 6% increase from the previous year, reflecting a robust recovery in consumer demand post-pandemic, with expectations for continued high-single-digit growth in the coming years.
- Expansion Investment Plan: Disney is undertaking a $60 billion, 10-year investment initiative that includes theme park expansions, additional cruise ships, and digital gaming development, aimed at leveraging its extensive intellectual property to enhance visitor experiences and drive revenue growth.
- International Market Opportunities: Despite challenges from declining domestic visitors, international theme park revenue grew 7% to $1.75 billion in the first quarter, indicating Disney's potential in global markets, particularly with the upcoming Abu Dhabi park and the launch of a cruise ship servicing Asia.
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Disney Earnings Preview: Streaming and Traditional TV Challenges
- Streaming Profitability: Disney's streaming segment, led by Disney+, has recently turned profitable, although the decline in traditional TV subscribers has weighed on overall performance, highlighting the challenges and opportunities in the company's transformation.
- Earnings Expectations: Wall Street anticipates Disney's first fiscal quarter earnings per share to be $1.57 adjusted, with revenue expected to reach $25.74 billion, reflecting investor focus on its streaming and theme park businesses.
- Theme Park Investment: Disney has committed to investing $60 billion in its theme parks over the next decade; despite potential economic pressures on consumer spending, its cruise business remains strong, demonstrating resilience in its experiences segment.
- CEO Succession Race: Amid Bob Iger's impending retirement, Disney is facing a competitive race for CEO succession, expected to select a new chief in early 2026, likely either Josh D'Amaro or Dana Walden, which will have significant implications for the company's strategic direction.
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