Подобрий Михаил
0
All posts from Подобрий Михаил
Подобрий Михаил in OneTwoThree,

Disney earns not a cartoon money

The Walt Disney Company, incorporated on July 28, 1995, together with its subsidiaries, is a diversified worldwide entertainment company. The Company operates in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. They got Marvel, Pixar and Lucas film.

1) Financial analysis

Disney ROI and ROE are bigger than average in industry. P/E is near average. Sales (MRQ) vs Qtr. 1 Yr. Ago is 9.06 (average in industry is 3.14). Total Debt to Equity (MRQ) 38.94 (average in industry is 70.09). This is an excellent result. On Nov. 5, Disney reported earnings growth of 35%, topping analyst estimates for its fiscal 2015 fourth quarter, which ended Oct. 3.DIS's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Disney has improved earnings per share by 10.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Disney increased its bottom line by earning $4.90 versus $4.25 in the prior year. This year, the market expects an improvement in earnings ($5.62 versus $4.90).

The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 7.3% when compared to the same quarter one year prior, going from $1,499.00 million to $1,609.00 million.

The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

Consumer Products revenues for the quarter increased 11% to $1.2 billion, and segment operating income increased 10% to $416 million. Higher operating income was driven by earned licensing revenue growth, partially offset by an unfavorable impact from foreign currency translation due to the strengthening of the U.S. dollar against major currencies as well as higher marketing costs. Earned licensing revenue growth was driven by the performance of Star Wars Classic, Avengers and Frozen merchandise.

Analysts are looking for a 10% rise in earnings for fiscal 2016 and 2017. Estimates for both years were recently revised higher. The Walt Disney Co.'sprice target was lifted to $130 from $120 by analysts atCredit Suisse.

2) Market conditions

Beginning in 2012, the film becomes a distributor Walt Disney Pictures, which bought the company at this time Marvel Entertainment, which became a division of The Walt Disney Company.They have become distributors of the most profitable franchise.Trailer came out and set a record for close to 90 million views in the first 24 hours on YouTube. The much-anticipated installment of the "Star Wars" series is expected to generate over $2 billion in worldwide box office receipts. It is possible that Star Wars Episode Seven could surpass the box office of Avatar.

What's important to know, though, is that Episode 7 is a part of a broader, long-term strategy with the Star Wars franchise. So coming after Episode 7, of course, we've talked about Rogue One, which will come after that, which is a separate standalone piece. And then you get to Episode 8, another standalone piece, and then Episode 9. So this is a long pipeline. So even more important than the number that comes out with Episode 7 is the work that we're doing around the franchise as a whole. We view this as a long-term evergreen franchise that will impact our business around the world and around the entire Company. I think that's the important -- the most important way to think about Star Wars. It can become a profitable franchise as the Marvel Universe. Captain America: Civil War and Guardians of the Galaxy 2 are two more candidates in the box office of about 1 billion.

"Frozen" became the highest grossing animated film in the history of Disney, and also the highest grossing animated film in cinema history (excluding inflation) and only the second animated film, the worldwide box office which exceeded one billion dollars (the first cartoon - "Toy Story 3 "). The animated film became the highest grossing release of 2013, and is the eighth highest grossing picture of the history of cinema. It can start a new franchise, 

ESPN(U.S.-based global cable and satellite television chanel) is the real concern. You have a channel in nearly all cable subscriptions, and it’s at a high price point. Even if cord cutting increases, ESPN has the most sports content and is a must-have for fans. Plus, it will still have revenue coming from subscriptions for a very long time, with cable cutters growing only between 1% and 2% a year. But still ESPN remains a huge moneymaker, and the primary reason many people still subscribe to cable TV.

3) Technical analysis


Walt disney is technically overbought and it would be wiser to wait for correction before buying. But because the lion's share of the growth potential is tied to the success of the new Star Wars release, then you need to start from the release date (December 14). Likely price can correct to turquoise or green support channel Fibonacci levels before the rental.

4) Conclusion

The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity.