Guggenheim's Michael Morris: Here's what to make of Disney's latest quarter

Core Viewpoint - Disney's recent quarter showed mixed results with a slight revenue miss but a beat on the bottom line, driven by growth in streaming services [1] Financial Performance - The company reported a slight revenue miss while beating earnings expectations, indicating a mixed quarter performance [1] - Analysts have noted that Disney's stock is currently undervalued, trading at about a 25% discount to the market at the low end of their guidance range for the coming year [8][9] Streaming and Entertainment Segment - The entertainment unit's growth is attributed to the continued increase in streaming, particularly through the bundling of services like ESPN and Hulu with Disney Plus [5][6] - There are early signs that the bundling approach is effective, leading to longer subscription life and lower churn rates [6] - However, the streaming business growth has not been as robust as expected, especially when compared to competitors like Netflix [9][10] Future Outlook - Analysts express that there is uncertainty regarding the performance of Disney's experiences segment and the direct-to-consumer business, which needs to prove its growth potential [3][4] - The company has set targets for operating income of around $10 billion, and there is a belief that they will ultimately deliver on these targets [8]