Walt Disney Co (NYSE: DIS) released its Q4 2021 revenue and earnings results on Wednesday, November 10, 2021, after market close.
What to look for
The company continued its strong Q3 2021 momentum into Q4 2021. Walt Disney continues to introduce new experiences at its resorts and parks globally alongside other guest-centered services and to the direct to consumer operations.
Earnings: Stockearning’s Estimated EPS for Q4 2021 was $0.09 per share relative to a loss of $0.39 a year ago. Excluding some items diluted EPS was $0.37 relative to a loss of $0.2 a year ago. Historical EPS Performance shows that the company has beat estimates ten times (83%) and missed estimates twice in the last 12 quarters. In the fourth quarter of 2021, the company had a loss per share of $0.04, and in Q3 2021, the company topped estimates by reporting EPS of $0.8 relative to estimates of $0.57 per share.
Revenue: The company reported revenue of $18.53 billion in Q4 2021, which was 26% YoY increase. In the third quarter, the company had revenue of $17.022 billion as it continued to grow its businesses despite the pandemic's challenges. In addition, the company had 174 million Disney+, Hulu, and ESPN+ subscriptions by the end of Q3 2021.
Stock movement: Since the earnings release, Disney shares have lost 8.5%. The stock has been DOWN 26 times out of the last 47 quarters after the earnings release. So, the historical price reaction suggested a 55% probability of the share price going DOWN once Disney released Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, while the predicted move on the seventh day is 3%.
What analysts are saying
JPMorgan analyst Alexia Quadrani slashed her 2022 Disney+ user projections from $185 million to $164 million, 2023 estimates from 230 million to 210 million, and 2024 projections for 360 million to 235 million. She cited conservatism, considering there are so many unknowns current in the rollout in the coming years. The analyst reiterated her "Buy" rating on the stock with a December 2022 price target of $230 million. Quadrani is positive that the company will attain its fiscal 2021 subscriber target of 230 million to 260 million Disney+ subscribers, and she expects "robust growth in subscribers as positive to shares."
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