A new and an updated attraction hope to keep turnstile clicks coming at both domestic resorts with a new Marvel movie hoping to keep Disney's stock upticks coming. culminates in riders in six-passenger cars circling around the attraction building at speeds up to nearly 65 miles per hour. It is introducing some features that will give a nod to the original and more tranquil World of Motion attraction that opened in the same space when the park opened in 1982. Shares of Walt Disney (DIS -0.79%) enter July wit ...

Industry Overview - The Zacks Media Conglomerates industry is thriving due to the consumer shift towards over-the-top (OTT) content, with major players like Disney, Atlanta Braves Holdings, and Madison Square Garden Entertainment investing heavily in original content to attract Gen Z and millennial subscribers [1][2] - The industry's growth is supported by cost-effective alternative packages, such as skinny bundles, which offer lower prices compared to traditional offerings [1] - Challenges include declining broadcast television ratings, reduced demand for home entertainment sales, and advertisers' cautious spending amid inflation and high interest rates [1][2] Trends Impacting the Industry - Original content is driving growth as media companies adapt to consumer preferences for subscription services over traditional pay-TV, leading to increased opportunities for targeted advertising [3] - The demand for high-speed internet is a key catalyst, enhancing the consumption of high-quality videos and binge-watching trends, particularly in international markets with a growing broadband ecosystem [4] - The industry faces difficulties from cord-cutting trends and the maturation of the pay-TV sector, which has led to increased competition from streaming services [5] Industry Performance - The Zacks Media Conglomerates industry ranks 44 within the broader Zacks Consumer Discretionary sector, placing it in the top 18% of over 245 Zacks industries, indicating positive earnings outlook [6][8] - Despite this ranking, the industry has underperformed compared to the broader sector and the S&P 500, returning 4.9% over the past year versus 15.8% for the sector and 10% for the S&P 500 [9] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 1.51X, significantly lower than the S&P 500's 5.33X and the sector's 2.28X, suggesting potential undervaluation [12] Company Highlights - **Atlanta Braves Holdings**: Reported a 27% year-over-year revenue growth to $47 million, with baseball revenues up 30% to $29 million. The company has a strong cash position of $244.7 million and access to $275 million in liquidity [15][17] - **Disney**: Achieved profitability for Disney+ and Hulu with a combined subscription base of 180.7 million. The company is trading at a discounted P/E ratio of 19.25, with projected 16% EPS growth for fiscal 2025 [20][22] - **Madison Square Garden Entertainment**: Revenues increased by 6% to $242.5 million, with adjusted operating income surging 50% to $57.9 million. The company is well-positioned for continued growth with diverse revenue streams and strong advance sales for upcoming events [25][27]

Core Viewpoint - Disney is showing signs of recovery and growth across all segments, with strong financial results for the second quarter of fiscal 2025, indicating a positive outlook for the company [1][6][11]. Financial Performance - Total revenue for the second quarter increased by 7% year-over-year to $23.6 billion, surpassing Wall Street expectations of $23.14 billion [6]. - All segments reported profitability, with entertainment operating income rising by 61%, and direct-to-consumer operating income reaching $336 million, up from $47 million the previous year [7]. - Disney+ added 1.4 million subscribers, while the Disney+ and Hulu bundle gained 2.5 million subscribers [7]. - Earnings per share (EPS) were reported at $1.45, exceeding the consensus target of $1.20 [7]. Segment Performance - The entertainment segment grew by 9%, parks by 6%, and sports by 5% [6]. - Disney studios had the top three highest-grossing films last year and a strong slate of 10 movies expected for release this year, including the next installment in the Avatar series [9]. Future Outlook - Management expressed confidence in continued profit increases across all segments and overall company earnings for the remainder of the year [11]. - Disney is on track to launch its ESPN streaming service later this year and plans to open a new theme park in Abu Dhabi, which will be a low-risk project as it will not require additional capital investment [10]. External Factors - The recent announcement of tariffs on foreign-made films by the Trump administration has raised concerns, but Disney management remains confident in their near-term outlook and profitability despite the uncertainty surrounding the tariffs [12][13]. - Following the tariff announcement, Disney's stock initially fell but rebounded after the earnings report, showing a 23% increase over the past month [14].