The Walt Disney company reported revenue growth of 9% and 23% for the fourth quarter and the full fiscal year 2021/2022 ended 1 October 2022 respectively, the company announced on 8 November. Since IPO, Disney stock has been traded on the New York Stock Exchange under the ticker symbol DIS, it has been one of the 30 stocks in the Dow Jones industrial average since 1991. As of 1 December2022, analysts tracked by MarketBeat gave Disney stock a moderate buy rating. However, Disney's recent success with Avatar: The Way of Water could mean audiences are truly back. Consider Disney's 2022 film slate versus its competitors. movie and theme park attendance and ratings for Disney-owned ABC and ESPN is up for debate. account day-to-day movements in market value compared to a companys liability structure. Disney CEO Bob Iger (Iger, hereinafter) said, ".. but let me also address the pricing side. The return of a dividend is a positive sign as it illustrates the company's financial confidence. . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. Stock Price Forecast. Disney is nearly doubling its content releases from top brands like "Star Wars" in fiscal 2022. Disney Parks, Experiences and . Furthermore, Disney paid $900m for Major League Baseballs remaining 15% stake in the streaming company BAMTech (MLB), according to a SEC filing on 30 November. OK, Avatar: The Way of Water was an exceptional film, becoming the third highest-grossing film ever in a matter of weeks. The content is distributed by a single organisation across three significant lines of business: Linear Networks, Direct-to-Consumer and Content Sales/Licensing. The landscape looks a lot different these days, but some things never change, such as James Cameron's stunning ability to create incredible sales-generating films, and Disney's ability to find people like him and churn out new hits from reliable franchises. For 2023 fiscal year, Disneyexpected to spend cash content in the low of $30bn and $6.7bn of capital expenditure, up from $5bn in the 2022 fiscal year, McCarthy said. Disney is ending calendar 2021 with a bang, but there is much more on the way that could be explosive for subscriber growth. "We are intent on reducing our debt," Iger said on 2/9/2023 during an interview on CNBC. However, with a solid return of park guests and theater audiences, Disney looks to be back on the path to growth. The streaming service was a key revenue driver during the pandemic, as people are stuck at home due to Covid restrictions. Follow Matt Krantz on Twitter at @mattkrantz, View Breakout Stocks & Technical Analysis, Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest, Catch The Next Big Winning Stock With MarketSmith. Highlights along the way included Disney's first sound film, "Steamboat Willie," in 1928, its first feature-length animated film, "Snow white and the Seven Dwarfs" in 1937, and a foray into television in 1950. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: It needs to first show significant improvement. This level of yield is unlikely to attract a significant number of new income investors, and therefore may not increase the shareholder base and value significantly. Disney is currently faced with the question of whether these changes can be made before conditions change again, and how far should the changes go? Both Nasdaq (32.7% down from its peak) and Dow Jones (17% below its peak) are also presenting slumps. In the last year, DIS' stock price corrected by -25.8%, and . Despite theaters reopening in 2022, the market had not returned to pre-pandemic form by the end of the year. It also licenses characters from its film, television and other properties for use on third-party products and earns royalties. It booked earnings per share (EPS) of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. Activist investors continue to play a cooperative role. . I wrote this article myself, and it expresses my own opinions. 3, Wish II) and two are based on previous hits (Peter Pan & Wendy, The Little Mermaid). The history of the company started when brothers Walt and Roy founded the Disney Brothers Cartoon Studio on 16 October 1923, following Walts success in selling his first pilot cartoon film series,Alice Comedies. In other words, the majority of Disney's theater content is almost no-brainer efforts. While its theme parks and cruise businesses got hit, the entertainment giant found success with its Disney+ streaming service. The entertainment company, which will celebrate its centennial anniversary in 2023, is facing headwinds such as fourth-quarter earnings that fell short of analysts' expectations and a looming recession, which may lead toconsumers cutting down on non-essential spending such as entertainment costs. Currently, DIS is trading at an EV-to-EBITDA multiple of 18.46, which is the highest among its peers. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. Since my return, I have drilled down into every facet of the streaming business to determine how to achieve both profitability and growth.. Some investors may adopt a wait-and-see approach. 3 Dates for Disney Stock Investors to Circle in March, Stocks most and least liked by hedge funds and mutual funds - Goldman, T. Rowe Price Associates, Inc. (Investment Management), Northern Trust Investments, Inc.(Investment Management), Chairman-International Content & Operations, Chief Compliance Officer & Senior Vice President, Chief Diversity Officer & Senior Vice President, Chief Financial Officer & Senior Executive VP, Chief Human Resources Officer & Senior EVP, Chief Security Officer & Senior Vice President, EVP-Controllership, Financial Planning & Tax, Executive VP-Corporate Social Responsibility, Regional Director Bus Dev Operating Participants, Senior Executive Vice President & General Counsel, Registration on or use of this site constitutes acceptance of our. Management said that range will now be higher, as they ramp up spending on local and regional content. * Average Estimates in Million (e.g. Thats a perfect example how the linear platforms, while they still have an audience and could help us monetize can still be used effectively, and we have that ability. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Formerly with Fidelity Investments, Dean Witter Investment Management, Citibank - Amsterdam, Eli Lilly - Brussels, Thomson Financial (aka Thomson Reuters), NYC gov., and Apple, Inc. Graduate of Baruch College CUNY, NYU College of Arts and Sciences, and Erasmus University (Rotterdam School of Management) in that order. Adding all this up, the Disney+ service is clearly being undervalued by the market right now. Guidance still points to the service reaching profitability by fiscal 2024. Let's assess. The information and content are subject to change without notice. Susannah Streeter, Hargreaves Lansdowns senior investment and markets analyst, said that while Disneys subscribers growth has been impressive, the revenue growth rate was expected to start slowing. call +44 20 3097 8888 support@capital.com. According to Variety, Disney spent about $460 million producing and promoting the film. As of May 10th, 2022, the stock was trading at around $108.49. Since reaching an all-time high closing price in March 2021. But losses in the streaming business continue to hurt the business. He ultimately reached an agreement with the Disney Board, which added an ally to the Board. But slowing growth from Disney's marquee streaming service, Disney+, caused the shares to slump toward the end of the year. Capital Com Online Investments Ltd is a Company registered in the Commonwealth of The Bahamas and authorised by the Securities Commission of The Bahamas with license number SIA-F245. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. In early November, Disney made a surprise leadership change, reinstalling Bob Iger as CEO, in an attempt to turn things around. 3 Dates for Disney Stock Investors to Circle in March, Disney Can't Make a Multiplex Mountain Out of an Ant Hill, This Could Be a Reason Disney Stock Soars This Year, Disney World to Loosen Reservation Regulations, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, This State Has the Highest Real Estate Taxes (and It's Not Even Close), Disney still has a mountain to climb to get its flagship, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Fourth-quarter revenue rose to $20.15bn from $18.53bn a year ago, but was 4.5% lower than consensus estimates polled by Zacks.com. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. At the time of writing (1 December2022), the stock was trading at $97.64, below the pre-pandemic level. The sell-off was prompted by a combination of macroeconomic headwinds and increased competition in streaming that meant succeeding in the industry was costly. The DPEP segment includes significant lines of business like parks and experiences and consumer products. Disney should not divest Hulu because Iger himself has said that Hulu ensures coverage of different age groups and broadens the market for its streaming services. At the time of writing (1 December 2022), the stock last closed at $97.87 per share on 30 November, having sunk 51.8% from its all-time high price of $203 on 8 March 2021. It actually lost subscribers in the fourth quarter, and losses were still staggering. "Encanto" won the award for animated feature film. Stock Market Falls Ahead Of Inflation Report; Just A Bullish Pause? Disney's revenue sources are divided into two streams. During Igers leadership from 2005 to 2020, Disney expanded its business with acquisitions of blockbuster-producing film studios Pixar, Marvel, Lucasfilm and 21. Walt Disney's (DIS) theme parks are bustling again following a long slow period during the pandemic. Nelson Peltz, an activist investor, continued to engage with and urge Disney's management to undertake restructuring. If it . That makes Disney one of the worst . Here's why the stock should bounce back in 2022. Additionally, its forward PE ratio is the third highest among its peers, which further suggests that the stock may be overvalued. Disney is not short of growth opportunities heading into 2022. It only grossed roughly $156 million through late June, below its $200 million budget. Remember that your decision to trade or invest should be based on your risk tolerance, market expertise, portfolio sizeand investmentgoals. The investment case for Disney hinges on the growth of Disney+, so it's understandable for the stock to trade in line with the rate of subscriber growth, but the market overreacted to Disney's results last quarter. Disney announced a restructuring plan, which could potentially result in cost savings of $5.5 billion, and the company also announced the termination of 7,000 jobs. Disney+ added only 2.1 million subscribers last quarter, which left Disney's share price on a downward spiral in 2021. This overvaluation may be due to investors' confidence that growth will increase following Iger's restructuring efforts. of $0.30 in the fourth quarter, down from $0.37 in the prior-year quarter. The acquisition included Foxs renowned film production business Twentieth Century Fox, as well as Foxs interests in streaming service Hulu, which helped the company to compete with rival streaming titan Netflix. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The 64 analysts offering price forecasts for Walt Disney. Consider Disney's 2022 film slate versus its competitors. The US Consumer Price Index (, revenue growth of 9% and 23% for the fourth quarter and the full fiscal year 2021/2022 ended 1 October 2022 respectively, the company announced on, Fourth-quarter revenue rose to $20.15bn from $18.53bn a year ago, but was 4.5% lower than consensus estimates polled by, A closer look at its segments reveals that revenue from Disney Media and Entertainment Distribution fell 3% year-over-year (, Disneys chief financial officer Christine McCarthy said during the earning call on. 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