Walt Disney Q1 Profit Beats Estimates

by Ike Obudulu Posted on February 5th, 2019

Burbank, California, USA : Media and entertainment giant Walt Disney Co. (DIS), Tuesday reported a profit for the first-quarter profit that trumped Wall Street estimates, driven largely by growth in park and resorts as well as media businesses.

Burbank, California-based Disney’s first-quarter profit dropped to $2.79 billion or $1.86 per share from $4.42 billion or $2.91 per share last year. Last year’s bottomline included a $1.6 billion one-time tax benefit associated with U.S. federal tax reforms.

Adjusted earnings for the quarter were $1.84 per share, compared with $1.89 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.55 per share.

Revenues for the quarter were relatively flat at $15.30 billion compared to last year’s $15.35 billion last year. Analysts had a consensus revenue estimate of $15.18 billion.

Disney has agreed to acquire 21st Century Fox (FOX, FOXA) for $71 billion. Disney will absorb Fox’s storied film and television studios as well as stakes in the Sky PLC pay-television company and the Hulu video-streaming service.

Media networks segment’s revenues rose 7 percent to $5.92 billion, while parks and resorts units increased 5 percent to $6.82 billion.

Studio entertainment revenues dropped 27 percent to $1.82 billion, largely reflecting strong performances of Star Wars: The Last Jedi and Thor: Ragnarok in the prior-year quarter compared to Mary Poppins Returns and The Nutcracker and the Four Realms in the current year. Direct-to-Consumer & International revenues declined 1 percent to $918 million.

DIS closed Tuesday’s trading at $112.66, up $0.86 or 0.77% on the NYSE. The stock further gained $1.91 or 1.65% in the after-hours trade.

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Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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