2024-05-08 13:49:18 ET
Summary
- Disney's Q2 revenue fell short of expectations, but adjusted profits exceeded forecasts.
- The company saw strong growth in Disney+ subscribers, but a decline in ESPN+ subscribers and only modest growth at Hulu.
- Theme parks and related assets performed well, with increased attendance and revenue, while most other core parts of the business grew as well.
- Shares look attractively priced based on current guidance, especially for such a high-quality business.
Things could have gone better for entertainment behemoth Disney ( DIS ) on May 7. Before the market opened, management announced financial results covering the second quarter of the company's 2024 fiscal year. Results ended up being mixed with revenue falling short of expectations but adjusted profits exceeding forecasts. Although the revenue picture was somewhat disappointing, the company performed quite well by almost every other metric. The only other weak spots that I noticed involved streaming service ESPN+ and the firm's theatrical distribution operations. On the whole, however, management posted some robust data points that show that this truly is a best of breed opportunity....
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Disney: The Magic Is Far From Lost