Walt Disney Company (NYSE:DIS)
Walt Disney Company, ubiquitously known as either Disneyland,Disney World, and The Disney Channel, reported their most current earnings per share numbers after the market closed on May 9, 2017.
Shares have been in a fairly tight range for the past 52 weeks. They have traded from as low of $90.32 to a high of $116.10. Disney pays a decent dividend which comes out to 1.39 % annually.
The company posted earnings of $1.50 per share which topped estimates coming in from analysts at $1.41 per share. They reported revenues of $13.34 billion dollars which missed estimates of $13.45 billion. While many or most of their segments of the company saw their revenues increase, it was the specific category of ESPN which saw operating income decline 3%.
This huge sports focused sector has seen many subscribers of their ESPN channels as well as App users in steady decline for some time now. Disney has many competitors in many areas of its businesses diversifications. Some of note are CBS Network, Comcast (NASDAQ:CMCSA), Twenty-First Century Fox Inc (NASDAQ:FOX), Lions Gate Entertainment (NYSE:LGFa) to name a few.
Disney Price Charts
Disney Chart
In the above price chart you will see price history going back to the beginning of 2017. Please note the price channel shares have observed- the upper channel being in red showing as resistance and the lower green trend line serving as price support.
The highlighted red oval area on the right is where shares will likely open for trading on Wednesday morning/ Traders and investors will be watching how the stock trades on Wednesday before making their decisions whether to buy or sell the shares.
The above price chart shows the one minute price action from the 4pm close of regular trading to the 8 pm close of the after market session. One can clearly see exactly when the moment earnings were announced as the price dropped like a rock shown in red bars.
It then tried to recover only to see more selling.Then it began to bottom out and go in a basing action until 8 p.m. In all, shares closed down about 2.63% in the after hours session closing at $109.12.
Company Comments
“The current quarter benefited from lower pre-release marketing costs and the strong performance of “Beauty and the Beast,” but such benefits were offset by the performance of “Star Wars: The Force Awakens” and “Zootopia” in the prior-year quarter compared to “Rogue One: A Star Wars Story” and “Moana” in the current quarter. Disney shares ended the regular trading day up 0.6%. –Marketwatch.com
And CEO Bob Iger had this specifically to say:
“Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth. We’re pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term.”
Company Profile
The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.
Under the Parks and Resorts segment, the Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The studio entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays.
It also develops and publishes games, primarily for mobile platforms, books, magazines and comic books. The Company distributes merchandise directly through retail, online and wholesale businesses. Its cable networks consist of ESPN, the Disney Channels and Freeform.