The 10-second takeaway
For the quarter ended March 30 (Q2), Walt Disney met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Walt Disney tallied revenue of $10.55 billion. The 25 analysts polled by S&P Capital IQ predicted a top line of $10.49 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $9.63 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 28 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. Non-GAAP EPS of $0.79 for Q2 were 36% higher than the prior-year quarter's $0.58 per share. GAAP EPS of $0.83 for Q2 were 32% higher than the prior-year quarter's $0.63 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 20.8%, 330 basis points better than the prior-year quarter. Operating margin was 20.8%, 330 basis points better than the prior-year quarter. Net margin was 14.3%, 240 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $11.74 billion. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $45.16 billion. The average EPS estimate is $3.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,442 members out of 5,789 rating the stock outperform, and 347 members rating it underperform. Among 1,631 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,588 give Walt Disney a green thumbs-up, and 43 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 $61.04.
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