Disney ( $DIS ) Earnings Breakdown

Disney ( $DIS ) Earnings Breakdown

Highlights:
-EPS reported 1.22 vs estimate 0.99 (+22.86%)
-Revenue reported 23.54b vs estimate 23.70b (-0.68%)
-Revenues: $23.5 billion, comparable to prior-year quarter.
-Diluted EPS: $1.04, up from $0.70 in prior-year quarter.
-Excluding certain items, diluted EPS: $1.22, up from $0.99.

Good Parts:
-Achieved over $500 million in expense savings in the first quarter.
-On track to meet or exceed $7.5 billion savings target by fiscal 2024.
-Expects full-year fiscal 2024 EPS to increase by at least 20% to $4.60.
-Expects free cash flow of roughly $8 billion in fiscal 2024.
-Projects streaming business profitability in Q4 fiscal 2024.
-Reported growth in Hulu subscribers and Disney+ Core ARPU.
-Recorded growth in revenue and operating income at ESPN.
-Achieved all-time records in revenue and operating margin at Experiences.

Bad Parts:
-Decrease in domestic operating income due to lower advertising revenue and subscribers.
-Decrease in international operating income due to lower affiliate revenue.
-Decrease in income from equity investees, primarily A+E Television Networks.

Grades:
Income Statement: B+
-Solid revenue performance and EPS increase, but concerns about decreased operating income.

Balance Sheet: A-
-Strong current assets and manageable liabilities, slight concern about decrease in total assets.

Cash Flow Statement: B
-Positive operating cash flow but significant cash used in financing activities, decline in cash.

Summary:
Disney's Q1 2024 earnings report shows mixed performance. While revenue and EPS increased, challenges in certain operating segments require attention. Cost reduction efforts, streaming profitability, and subscriber growth are positive indicators. However, ongoing efforts are needed to address operating segment declines and manage cash effectively. Overall, Disney remains strong but should navigate challenges for sustained growth and shareholder value creation.