Disney's Q4 Earnings Disappoint Despite Profit

Overview

The Walt Disney Company (NYSE: DIS) reported its earnings for the fourth quarter and full year ended September 30, 2023, on Wednesday, November 9, 2023.

The company's earnings per share (EPS) came in at $1.09, which was below analysts' expectations of $1.12.

Revenue for the quarter was $23.51 billion, which was also below analysts' expectations of $23.91 billion.

Key Takeaways

• Disney's earnings per share (EPS) came in at $1.09, which was below analysts' expectations of $1.12.
• Revenue for the quarter was $23.51 billion, which was also below analysts' expectations of $23.91 billion.
• The company's operating income declined by 14% to $3.3 billion.
• Disney's theme parks and experiences segment saw a 7% increase in revenue to $7.4 billion.
• The company's direct-to-consumer segment saw a 1% decrease in revenue to $4.9 billion.

Analyst Commentary

Analysts were generally disappointed with Disney's earnings report.

"Disney's earnings report was a disappointment," said John Janedis, an analyst at Jefferies. "The company's EPS and revenue came in below our expectations, and its operating income declined by 14%."

"We believe that Disney is facing a number of challenges, including the rising cost of content, competition from streaming services, and the impact of the COVID-19 pandemic," Janedis added.

Stock Performance

Disney's stock price fell by 6% in after-hours trading following the release of its earnings report.

The stock is currently trading at $105.50 per share, which is down from its 52-week high of $167.70.

Conclusion

Disney's earnings report was a disappointment for investors, and the company's stock price fell in after-hours trading.

Analysts were generally negative on the report, citing the company's weak EPS and revenue growth, as well as its declining operating income.