Walt Disney
The 10-second takeaway
For the quarter ended June 30 (Q3), Walt Disney missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins grew across the board.
Revenue details
Walt Disney reported revenue of $11.09 billion. The 23 analysts polled by S&P Capital IQ predicted revenue of $11.30 billion on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $10.68 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.01. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.93 per share. GAAP EPS of $1.01 for Q3 were 31% higher than the prior-year quarter's $0.77 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 26.7%, 380 basis points better than the prior-year quarter. Operating margin was 26.7%, 380 basis points better than the prior-year quarter. Net margin was 16.5%, 270 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $11.07 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $42.79 billion. The average EPS estimate is $3.02.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,998 members out of 5,333 rating the stock outperform, and 335 members rating it underperform. Among 1,434 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,382 give Walt Disney a green thumbs-up, and 52 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 $49.44.
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