The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Walt Disney missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share improved significantly.
Margins expanded across the board.
Walt Disney booked revenue of $10.78 billion. The 25 analysts polled by S&P Capital IQ looked for sales of $11.19 billion. Sales were 0.6% higher than the prior-year quarter's $10.72 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.80. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.80 for Q1 were 18% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 220 basis points better than the prior-year quarter. Operating margin was 20.3%, 220 basis points better than the prior-year quarter. Net margin was 13.6%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.62 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $42.90 billion. The average EPS estimate is $2.99.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,827 members out of 5,154 rating the stock outperform, and 327 members rating it underperform. Among 1,453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,411 give Walt Disney a green thumbs-up, and 42 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walt Disney is outperform, with an average price target of $41.74.
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