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.
Is Walt Disney the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Walt Disney to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.