Walt Disney Co (NYSE:DIS) shares tanked in early trading on Friday after the company reported mixed fiscal fourth-quarter results on Thursday.
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Here are some key analyst takeaways:
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Rosenblatt Securities: Walt Disney’s revenues remained almost flat year-on-year, coming in at $22.5 billion, short of expectations, Crockett said. Pro forma earnings contracted 3% year-on-year to $1.11 per share, but were higher than Rosenblatt’s estimate of nine cents per share, he added.
“The company’s core strength is durable parks,” the analyst wrote. Although revenue growth at six domestic parks slowed to 6.1%, from 10% in the previous quarter, international parks accelerated to 10%, from 6% in the fiscal third quarter, he stated.
Needham: Walt Disney reported mixed results, with revenues missing estimates and earnings coming in higher, Martin said in a note. Management issued “weak” guidance for the December quarter, she added.
Walt Disney’s growth is “tied to” expansion in Cruise Ships and Theme Park, which implies “higher capital intensity going forward,” the analyst wrote. While Theme Park bookings are up 3% for the December quarter, Cruise Ships could generate strong new revenue growth from Disney Destiny, to be launched on Nov. 20, Disney Adventure, planned for launch in March 2026, and five new ships beyond fiscal 2026, she further stated.
Guggenheim Securities: Walt Disney reported its total revenues 1% below Street expectations, Morris said. Although the miss is small, it is relevant, “given intense investor focus on demand and consumer trends,” he added.
The analyst lowered the segment operating income forecast from $5.3 billion to $4.7 billion, mainly due to “higher cruise-related expenses, tough political advertising comps, increased marketing expense ahead of ‘Avatar: Fire and Ash’ and slower than previously forecast DTC SVOD margin growth.” Management reiterated their projection of double-digit earnings growth in fiscal 2026 and 2027, he further stated.
Goldman Sachs: Walt Disney’s direct-to-consumer earnings in the fiscal fourth quarter and outlook for the fiscal first quarter missed expectations, Ng said. Entertainment revenues came in at $10.21 billion, missing consensus of $10.44 billion, he added.
The company’s cash content outlook of $24 billion, combined with the SVOD (subscription video on demand) EBIT margin outlook of 10%, “implies less operating leverage and the need to invest more to drive growth than we expected,” the analyst stated.
DIS Price Action: Shares of Walt Disney had declined by 0.88% to $106.63 at the time of publication on Friday.
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