3 Lessons From Disney's Latest Financial Results

Core Insights - Walt Disney announced its fiscal first-quarter results ahead of the market's first trades of February, revealing respectable performance but an unfavorable initial reaction from shares [1] Financial Performance - Revenue rose 5% to $26 billion for the holiday quarter, slightly exceeding analysts' expectations of $25.6 billion, while adjusted earnings per share declined 7% to $1.63, which was better than the anticipated $1.58 [5] - The entertainment segment, which includes media networks, studios, and streaming operations, saw revenue growth of 7%, but experienced a 35% year-over-year drop in operating income, marking the worst performance among Disney's three segments [6] Segment Analysis - The streaming business reported a 72% surge in operating profit; however, overall profitability was impacted by higher production costs and the acquisition of a majority stake in Fubo, following the transfer of Hulu + Live TV to the operator [7] - The experiences segment, which includes theme parks, cruise lines, and consumer products, achieved a 6% revenue increase and was the only segment to deliver growth in operating profit, contributing 39% of the revenue mix and 72% of overall operating profit [8] - The sports segment, the smallest in terms of revenue and margins, saw a 1% revenue increase but a 25% decline in operating income due to rising programming and production costs [9]