"Disney beat earnings expectations this morning but missed on revenue, a split result that underscores the tension between the company's recovery momentum and its struggle to grow the top line. Adjusted EPS came in at $1.11 versus the $1.06 estimate, while revenue landed at $22.46 billion against a $22.98 billion expectation. The stock was trading near $116 at filing. The bright spot was Parks and Experiences, where operating income climbed 13% year over year on strong domestic and international performance."
"Entertainment operating income, however, fell 35% year over year. Content Sales and Licensing weakness and Linear Networks pressure dragged the division down. This is the segment that's supposed to benefit from the company's $24 billion content investment commitment, yet it's the one showing the most visible strain. Total segment operating income declined 5% year over year to $3.48 billion. Net income reached $2.55 billion, and free cash flow came in at $739 million."
Disney reported adjusted EPS of $1.11, beating estimates, while revenue missed at $22.46 billion. Parks and Experiences operating income rose 13% year over year, supported by strong domestic and international performance. Direct-to-Consumer revenue expanded 8% driven by subscription growth across streaming properties. Entertainment operating income declined 35% due to Content Sales and Licensing weakness and Linear Networks pressure. Total segment operating income fell 5% to $3.48 billion, with net income of $2.55 billion and free cash flow of $739 million. Year-to-date revenue growth is 2.1%, and management increased the share buyback target to $7 billion.
Read at 24/7 Wall St.
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