The Walt Disney Company (NYSE: DIS) released its FY22 Q2 earnings results on Wednesday after the market closed. The company reported stronger than expected results with a revenue of $19.25 billion and an EPS of $1.08.
total Disney+ subscriptions rose to 137.7 million during the fiscal second quarter, higher than the 135 million analysts had forecast. Disney’s parks, experiences and products segment saw revenues more than double to $6.7 billion during the quarter, compared to the prior-year period.
Shares rose 3% during after hours following the announcement.
Reported vs. Expected
EPS: $1.08 vs $1.02 expected
Revenue – $19.25 billion vs $18.91 Billion expected
Financial Highlights:
- Revenues for the quarter and six months grew 23% and 29%, respectively, despite a $1.0 billion reduction for the amount due to a customer to early terminate license agreements for film and television content delivered in previous years in order for the Company to use the content primarily on our direct-to-consumer services.
- Diluted earnings per share (EPS) from continuing operations for the quarter decreased to $0.26 from $0.50 in the prior-year quarter. Excluding certain items(1), diluted EPS for the quarter increased to $1.08 from $0.79 in the prior-year quarter.
- EPS from continuing operations for the six months ended April 2, 2022 increased to $0.89 from $0.52 in the prior-year period. Excluding certain items(1), EPS for the six months increased to $2.14 from $1.11 in the prior-year period.
CEO’s Statement
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,”
“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
Bob Chapek, Chief Executive Officer, The Walt Disney Company
Earnings History
Walt Disney last reported earnings on February 9, 2022. The entertainment conglomerate reported $1.06 earnings per share (EPS) for the quarter, $0.49 higher than the consensus estimate of $0.57. The company earned $21.82 billion during the quarter, compared to analysts’ expectations of $21.20 billion. Walt Disney has earned $1.68 per share in the last year ($1.68 diluted earnings per share) and has a price-to-earnings ratio of 63.7.
Nearly 12 million Disney+ subscriptions were added to the subscriber base in the first quarter. In addition, the service’s average revenue per user (ARPU) in the United States and Canada increased to $6.68 per month from $5.80 a year ago.
On the news, the stock rose about 8% in extended trading that day.
Annual Forecast
Walt Disney’s earnings are expected to increase by 30.07% in the coming year, from $4.49 to $5.84 per share. For the current year, Disney’s top line is expected to surge 26% year-over-year from 2021.
Dr. Strange and Avatar
Doctor Strange in the Multiverse of Madness, Marvel Studios’ supernatural action-adventure film, cast a $450 million spell over global audiences in its opening weekend, debuting at No. 1 in all markets, marking the highest global opening of the year to date.
The teaser trailer for 20th Century Fox’s Avatar: The Way of Water, which hits theaters on May 6, is now available. The first sequel to James Cameron’s Avatar, the highest-grossing film of all time, will be released in theaters on December 16, 2022.
Disney 2022 Movies
Lightyear (June 17) and Thor: Love and Thunder (July 8) will be released during the summer of 2022. Moreover, we have Hocus Pocus 2, Disenchanted, Black Panther sequel Wakanda Forever, Pinocchio, and The Guardians of the Galaxy Holiday Special for fall 2022.
Company Profile
The Walt Disney Company and its subsidiaries and affiliates are a leading global family entertainment and media company with five business segments: media networks, parks and resorts, studio entertainment, consumer products, and interactive media.
