The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Walt Disney beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.
Margins shrank across the board.
Walt Disney tallied revenue of $11.34 billion. The 25 analysts polled by S&P Capital IQ hoped for sales of $11.22 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $10.78 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.79. The 29 earnings estimates compiled by S&P Capital IQ averaged $0.77 per share. GAAP EPS of $0.77 for Q1 were 3.8% lower than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.4%, 190 basis points worse than the prior-year quarter. Operating margin was 18.4%, 190 basis points worse than the prior-year quarter. Net margin was 12.2%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.38 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $44.99 billion. The average EPS estimate is $3.40.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,309 members out of 5,652 rating the stock outperform, and 343 members rating it underperform. Among 1,602 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,553 give Walt Disney a green thumbs-up, and 49 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 $54.67.
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