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Disney (DIS) Dips As Q4 And Full-Year Revenues Sink

The Walt Disney Company DIS just released its fourth quarter and full fiscal 2017 financial results, posting earnings of $1.13 per share and revenues of $12.78 billion. Currently, Disney is a Zacks Rank #4 (Sell) and is down over 3% to $99.56 per share in after-hours trading shortly after its earnings report was released.

Disney:

Beat earnings estimates. The company posted earnings of $1.13 per share, just beating the Zacks Consensus Estimate of $1.12 per share.

Missed revenue estimates. The company saw revenue figures of $12.78 billion, missing our consensus estimate of $13.15 billion.

Walt Disney Company’s Q4 earnings per share jumped 3% year-over-year. However, the company’s fourth-quarter revenues dipped by 3%.

Disney’s full-year earnings fell from $5.73 per share to $5.69 per share. On top of that, the company’s full-year revenues dropped from $55.63 billion to $55.14 billion, which marks a 1% decline.                                   

Disney’s Media Networks revenues also experienced a 3% decline from the year-ago period to $5.5 billion.

The company’s operating income from its Cable Networks dropped by $15 million to $1.2 billion. ESPN’s results were “comparable to the prior-year quarter as higher programming costs and lower advertising revenue were offset by higher affiliate revenue.”

Disney’s Broadcasting unit saw its operating income fall by $42 million to $229 million, due in large part to lower advertising revenues and a drop in program sales. Revenues in this unit declined 11% to $1.51 billion.

“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company,” CEO Robert Iger said in a statement.

“We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.”

Here’s a graph that looks at Disney’s Price, Consensus and EPS Surprise history:

Walt Disney Company (The) Price, Consensus and EPS Surprise

Walt Disney Company (The) Price, Consensus and EPS Surprise | Walt Disney Company (The) Quote

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

Check back later for our full analysis on Disney’s earnings report!

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