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.
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.