Disney Q4 and FY21 earnings miss estimates

The Walt Disney Company is an American multinational entertainment and media company. It released its fourth quarter and full year earnings for FY21 on November 10, 2021 after the closing bell. Here is all you need to know about the latest disclosure.

Quarterly results:

  • Revenue: $18.5 billion vs 18.85 billion expected
  • EPS: $0.37 adjusted vs $0.51 expected
  • Net Income: $160 million

Full year Results:

  • Revenue: $67.4 billion vs $67.71 billion expected
  • EPS: $2.29 adjusted vs $2.50 expected
  • Net Income: $2.02 billion

CEO’s Statement

“This has been a very productive year for The Walt Disney Company, as we’ve made great strides in

reopening our businesses while taking meaningful and innovative steps in Direct-to-Consumer and at our Parks, particularly with our popular new Disney Genie and Magic Key offerings. As we celebrate the two-year anniversary of Disney+, we’re extremely pleased with the success of our streaming business, with 179 million total subscriptions across our DTC portfolio at the end of fiscal 2021 and 60% subscriber growth year-over-year for Disney+. We continue to manage our DTC business for the long-term, and are confident that our high-quality entertainment and expansion into additional markets worldwide will enable us to further grow our streaming platforms globally.”

said Bob Chapek, Chief Executive Officer, The Walt Disney Company
Analysts Estimate

The Zacks Consensus Estimate for earnings per share (EPS) for the fourth quarter was pinned at $0.51. This indicated a huge increase of 355% year-over-year. However, it also suggested a decline of 36.2% quarter-over-quarter.

The Earnings Expected Surprise Prediction was pinned at 9.81% which indicated that the consensus expected Disney to beat its estimates.

The estimated revenue was pinned at $18.85 billion that indicated a decent growth of 28.2% year-over-year.

The estimate for earnings per share for the year was pegged at $2.50, which suggested a growth of 23.7% from that of the last year. The revenue estimate for the year was $67.71 billion which indicated a slight growth of 3.6% year-over-year.

Earnings History

Disney’s third quarter earnings and revenue for FY21 had surpassesed the consensus estimate. The reported EPS was $0.80 against the estimate of $0.57. The posted revenue was $17.02 billion against an estimated revenue of $16.82 billion.

The second quarter revenue for FY21 was slightly sluggish. The reported revenue was $15.6 billion which indicated a decline of 13% year-over-year. However, the reported EPS was $0.79 which showed a growth of 32% from that of the previous year.

The first quarter perfomance was highly affected by the economic downturn due to the Covid-19 pandemic. The company’s net income plunged 99% to $29 million. Revenue declined by 22% to $16.2 billion. Diluted earnings per share (EPS) from continuing operations declined by 98% to $0.02 from $1.17 in the previous quarter.

Future Forecast

Analysts estimate the EPS for first quarter of FY21 to be $1.08, indicating a huge growth of 237.5% year-over-year. The estimated revenue for the same is pinned at $21.09 billion, suggesting a decent growth of 29.8% from that of last year.

The Annual Forecast for FY21 estimates the EPS to be $5.12 indicating a huge growth of 104.6% year-over-year. The estimated revenue for the same is pinned at $84.52 billion, suggesting a modest growth of 24.84% year-over-year.

Marvel Eternals

Marvel Studios’ ‘Eternals’ had a strong opening day collection. The estimated global weekend gross was about $161.7 million. The domestic collection amounted to $71 million. This was the second biggest collection in the year 2021 after F9 The First Saga’s $163 million. When Eternals was launched on the big screen the previous box-office champion, Dune, was pushed down to second place.

Disney Day

Disney had launched its streaming platform Disney+ on November 12, 2019. Therefore, it is going to host a ‘Disney day‘ celebration on the same date. It released a press release on the same stating, “On Friday, November 12, The Walt Disney Company will host Disney+ Day, a global celebration that will come to life across all dimensions of the Company. Subscribers to Disney+ will be treated to new content releases across the service’s iconic brands, Disney, Pixar, Marvel, Star Wars, National Geographic, and Star in international markets, along with a special presentation on Disney+ for fans with sneak peeks into what’s to come. In honor of the second anniversary of Disney+, subscribers will have access to promotions and experiences across the Company.”

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