3 Lessons From Disney's Latest Financial Results

In a uncommon move, Walt Disney (NYSE: DIS) announced its fiscal first-quarter results up of the market's archetypal trades of February. The media elephantine announced its latest show connected Monday morning.

The numbers and Disney's ain guidance are respectable, but the shares didn't initially respond favorably to the news. Let's spell implicit a fewer of the lessons investors tin larn astir the House of Mouse successful its caller report.

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The barroom of expectations was acceptable debased heading into this week's update. Revenue roseate conscionable 5% to $26 cardinal for the vacation quarter, but that was narrowly up of the 4% measurement up to $25.6 cardinal that analysts were targeting. Adjusted net per stock declined 7% to $1.63, but that's amended than the $1.58 people wherever Wall Street pros were perched.

Disney's concern is simply a potluck feast of consumer-facing leisure dishes. As usual, the performances were each implicit the representation connected the mode down to the bottommost line.

The top-line maturation was somewhat consistent. Revenue for its flagship amusement business, which includes its media networks, studios, and streaming operations, roseate 7%. This was the strongest top-line maturation of Disney's 3 segments, but the 35% year-over-year driblet successful operating income was besides the worst show of the three.

Despite a 72% surge successful operating nett for its now-thriving streaming business, the wide profitability of the conception was pulled backmost by higher accumulation outgo amortization for its movie workplace and the Fubo (NYSE: FUBO) transaction that closed during the quarter. Disney present has a bulk involvement successful Fubo aft handing implicit its Hulu + Live TV streaming level to the streaming TV relation successful October.

Experiences -- consisting of its taxable parks, cruise line, and user products -- was erstwhile again the prima pupil. The segment's gross roseate a humble 6%, but it was the lone concern to present maturation successful operating profit. Experiences matched the 6% top-line summation with its operating income.

The results were affirmative crossed its home and planetary taxable parks. Perhaps astir notably, the conception accounted for 39% of the gross premix but 72% of the wide operating profit.

Sports remains the smallest of the 3 segments successful presumption of revenue, operating results, and margins. Revenue inched 1% higher. Weighed down by the dependable drumbeat of rising programming and accumulation costs driven by contractual complaint increases, the concern saw its operating income diminution 25% successful the quarter.