Disney's "Zootopia 2" follows detectives Judy Hopps and Nick Wilde find themselves on the twisting trail of a mysterious reptile who turns the mammal metropolis of Zootopia upside down.Moviegoers have plenty to feast on at the box office this Thanksgiving.Disney's "Zootopia 2" snared $10.2 million in Tuesday previews, the second-highest haul for a Disney Animation Studios film ever, behind only last year's "Moana 2," which took in $13.8 million. It's the eighth-highest preview for an animated movie of all t ...

Core Insights - "Wicked: For Good" achieved an estimated $150 million in domestic ticket sales, marking the second-highest opening weekend for a film in 2025, following "A Minecraft Movie" at $163 million [1] - The film set a record for the biggest opening weekend of a Broadway adaptation, with a projected global haul of $226 million in its first three days [2] - The success of "Wicked: For Good" is expected to enhance box office performance during the Thanksgiving holiday season, alongside other films like Disney's "Zootopia 2" [3][4] Box Office Performance - The film's domestic opening of $150 million outperformed last year's "Wicked," which opened at $112.5 million [1] - The combination of "Wicked: For Good" and other films could challenge last year's record Thanksgiving box office [4] - "Zootopia 2" is anticipated to perform well, potentially reaching around $100 million in its three-day opening and over $125 million during the five-day Thanksgiving period [3] Market Trends - The strong performance of "Wicked: For Good" reflects a successful follow-up to the original film, indicating effective marketing and audience engagement strategies [3] - The positive box office results come in contrast to previous negative narratives surrounding the October box office performance [4]

Core Insights - Disney is experiencing significant growth in its direct-to-consumer streaming platforms, particularly with the integration of ESPN into Disney+, which is expected to enhance its competitive position in the streaming market [1][8] - The streaming segment reported an operating income of $336 million in Q2 2025, a substantial increase from $47 million in the same quarter last year, indicating a successful turnaround [1][8] - Profitable streaming operations are allowing Disney to invest in high-profile content, such as Moana 2 and Inside Out 2, which not only boosts streaming engagement but also enhances revenue across merchandise, parks, and cruises [2][8] Streaming Subscriber Growth - In Q2 2025, Disney+ added 1.4 million subscribers, reaching a total of 126 million, while Hulu reached 54.7 million subscribers, bringing Disney's total streaming subscribers to 180.7 million, a 2.5% sequential increase [4][8] - This growth reflects Disney's successful transition from traditional media to streaming, showcasing real momentum in subscriber acquisition [4] Competitive Landscape - Netflix remains a dominant player in the U.S. streaming market, with over $11 billion in revenue in Q2 2025 and a 45% earnings growth, leveraging its scale and exclusive content [4] - Paramount Global, through Paramount+ and Pluto TV, is also competing with Disney+ by utilizing its extensive content library, although it faces profitability challenges due to debt and operating losses [5] Financial Performance and Valuation - Disney's stock has gained 9.1% year-to-date, underperforming compared to the Zacks Consumer Discretionary sector and the Zacks Media Conglomerates industry [6] - The current forward 12-month Price/Earnings ratio for DIS stock is 19.46X, compared to the industry's 21.1X, indicating a relatively favorable valuation [9] - The Zacks Consensus Estimate for Disney's 2025 earnings is $5.78 per share, reflecting a 16.3% increase from the previous year [12]

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].

Core Insights - The Walt Disney Company announced the opening of its seventh theme park resort in Abu Dhabi, which will be operated under a licensing agreement with Miral, an immersive experiences company [1][3] - CEO Bob Iger emphasized that Disneyland Abu Dhabi will combine contemporary architecture and cutting-edge technology to provide immersive entertainment experiences [2] - The park aims to authentically represent Disney while incorporating Emirati culture, creating a unique destination for the region [3] Financial Performance - Disney reported second-quarter earnings with adjusted earnings per share of $1.45, surpassing the expected $1.20, and revenue of $23.6 billion, exceeding the anticipated $23.05 billion [9] - The entertainment segment generated $10.68 billion in revenue, above the expected $10.48 billion, while the experiences segment reported $8.8 billion, slightly above the forecast of $8.76 billion [9] - Despite a slight dip in Disney+ subscribers, the company experienced revenue growth in its experiences segment, supported by successful box office releases [8] Market Context - Analysts at Raymond James noted that Disney's diversification into travel and leisure has made the company more sensitive to macroeconomic factors, leading to a ~27% decline in DIS stock over approximately six weeks [4] - Concerns regarding potential tariffs on foreign-made films, as suggested by President Trump, have created uncertainty in the entertainment industry, which is still recovering from previous challenges [5][6] - The analysts highlighted that Disney's streaming networks are less exposed to international content, providing some insulation against potential film tariffs [6]

Core Viewpoint - The Walt Disney Company is transitioning from a post-pandemic recovery phase to a multi-engine growth platform, showcasing renewed financial strength and strategic clarity under CEO Bob Iger [1][17]. Group 1: Financial Performance and Growth Strategy - Disney's Studios division generated $5.5 billion in global box office revenue in 2024, with major releases like Inside Out 2, Deadpool & Wolverine 2, and Moana 2 each exceeding $1 billion [2]. - The company is committed to long-term IP planning, with a pipeline of scheduled releases for 2025-2026, including Pixar's Elio and Marvel's Thunderbolts, emphasizing storytelling as a financial engine [4]. - The Experiences segment, including theme parks and resorts, produced over $8 billion in operating income in 2024, with margins exceeding 30%, driven by record attendance and increased per-guest spending [9][11]. Group 2: Streaming and Direct-to-Consumer Segment - Disney's Direct-to-Consumer division achieved profitability for the first time in 2024, with over 240 million global subscriptions, marking a shift towards margin expansion [6]. - The integration of ESPN+ into Disney+ is expected in Fall 2025, aimed at increasing average revenue per user (ARPU) and reducing churn, positioning Disney as a comprehensive content platform [7]. - Streaming is now a positive contributor to EBITDA, supporting free cash flow generation and potential future capital returns [8]. Group 3: Capital Deployment and Expansion Projects - Disney is undertaking its largest expansion projects in history, with plans to increase park capacity by 20-25% by 2027, which is expected to yield a mid-teens return on invested capital [10][11]. - The cruise line segment is expanding with seven new ships under construction, targeting high-net-worth consumers and expected to double cruise capacity by 2026 [12]. Group 4: Gaming and Market Position - Disney announced a $1.5 billion investment in Epic Games to integrate its characters into the gaming metaverse, tapping into a global gaming market worth over $200 billion [14]. - The company is positioned as a platform with durable competitive moats, brand equity, and pricing power, representing a long-term investment opportunity with asymmetric upside [18]. Group 5: Corporate Governance - Following a proxy battle, the shareholder meeting reflected stability with all board members re-elected and executive compensation approved, although succession planning remains a concern as CEO Bob Iger's contract ends in 2026 [15][16].

Core Insights - Walt Disney's stock forecast indicates a potential upside of 27.26%, with a 12-month price target of $125.64 based on 26 analyst ratings, while the current price stands at $98.73 [1] Financial Performance - Earnings per share (EPS) for Q1 2025 increased by 44% year-over-year to $1.76, driven by the direct-to-consumer (DTC) segment, which benefited from price hikes for Disney+ and Hulu [2] - Income before income taxes rose 27% to $3.7 billion, and revenues from the film studio's Content Sales/Licensing segment surged 34% year-over-year to $2.2 billion, attributed to successful releases like Moana 2 and Inside Out 2 [2] Streaming Services - Disney+ and Hulu have seen average revenue per user (ARPU) increase by 5% and 4% year-over-year, respectively, due to price increases, with Disney+ subscribers at 124.6 million, exceeding analyst expectations [3] - The DTC business turned profitable in Q4 2024, with operating income improving by $431 million year-over-year to $293 million from a loss of $138 million in Q4 2023 [4] Subscriber Metrics - Despite a sequential decline of 700,000 Disney+ subscribers, the combined subscriber base for Disney+ and Hulu increased by 900,000 to 178 million, indicating a shift towards higher ARPU customers [5] - Sports revenue rose 9% to $4.422 billion domestically and 7% year-over-year to $389 million internationally [5] Theme Parks and Experiences - Domestic Parks and Experiences operating income fell 5% year-over-year, impacted by hurricanes and cruise pre-opening expenses, while international revenues surged 28% year-over-year [8] - Experiences revenues increased by 9% year-over-year to $9.4 billion, with flat operating income of $3.1 billion despite a $120 million hit from hurricanes [9] - The company invested $1.79 billion in domestic capital expenditures, focusing on cruise ship fleet expansion, which is expected to continue driving revenue in the Parks & Experiences segment [11] Stock Market Activity - DIS stock is attempting a market structure low (MSL) reversal after a decline, with a potential reversal trigger above $99.10 [12][13]

Financial Data and Key Metrics Changes - National CineMedia, Inc. reported fourth-quarter revenue of $86.3 million, slightly exceeding the guidance of $82 million to $86 million, but down from $90.9 million in the prior year [22][33] - Adjusted OIBDA for the fourth quarter was $35 million, surpassing the guidance range of $28 to $30 million, compared to $39.8 million in the prior year [22][38] - Full-year 2024 revenue was $240.8 million, down from $259.8 million in 2023, with adjusted OIBDA of $45.7 million compared to $52.7 million in 2023 [24][39] Business Line Data and Key Metrics Changes - National advertising revenue for Q4 decreased to $69.2 million from $71.9 million in Q4 2023, while local and regional advertising revenue fell to $13.5 million from $16.2 million [33] - Attendance for the fourth quarter was 101 million, driven by new titles, while total attendance for 2024 was 390.7 million, reflecting an 11% decline year over year [24][40] Market Data and Key Metrics Changes - The total domestic box office for Q4 2024 reached approximately $2.4 billion, a 26% increase year over year, with the full-year box office totaling $8.6 billion [12][15] - The audience demographic remains strong, with Gen Z and Millennials accounting for 69% of total viewership in Q4 [17] Company Strategy and Development Direction - The company is focusing on innovation and growth, particularly in programmatic and self-serve advertising solutions, which are expected to drive revenue growth in the coming years [31][50] - National CineMedia, Inc. is strategically investing in expanding its sales team and enhancing marketing efforts to support future revenue generation [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter of 2025, indicating strong sales pacing and a positive outlook for the remainder of the year despite expected near-term variability [29][48] - The company anticipates a slight decline in first-quarter revenue due to a weaker film slate and seasonal advertising slowdowns, but expects a strong recovery in attendance and advertising demand later in the year [30][48] Other Important Information - The company closed a new revolving facility with US Bank, reducing the cost of debt and annual interest expense, and has no outstanding long-term debt as of now [44][45] - National CineMedia, Inc. has repurchased 2.5 million shares for $13.4 million as part of its $100 million share repurchase program [45] Q&A Session Summary Question: Expectations on advertising headwinds and second half of the year - Management noted encouraging pacing for Q2 compared to last year, but could not provide specifics for the second half yet [55][56] Question: KPI-based ad sales and advertiser retention - Management indicated that half of the business is supported through NCMx, which is significant for advertiser retention and engagement [58] Question: Share of national advertisers still on the sidelines - Management acknowledged the need to calculate the percentage of pre-pandemic advertisers that have yet to return [63] Question: Expectations for attendance growth in 2025 and 2026 - Management stated that attendance is the primary driver of revenue growth, with forecasts for 2025 and 2026 aligning with industry expectations [66][67] Question: Advertiser sentiment compared to prior years - Management expressed that advertiser sentiment is currently positive, with no surprises expected from the industry [72] Question: Potential for higher upfront costs - Management believes they will perform better in the upfronts compared to last year, with a cleaner market environment [76][77] Question: Demand for premium screens and advertiser interest - Management confirmed high demand for premium screens, which is beneficial for attracting large advertisers [80] Question: Local and regional business growth - Management is optimistic about the local business comeback in 2025 and 2026, following reinvestment in the sales team [84]

Core Insights - The Walt Disney Company reported strong Q1 fiscal 2025 earnings, with adjusted earnings of $1.76 per share, surpassing estimates by 22.2% and increasing 44.3% year over year [2] - Revenues for the quarter rose 4.8% year over year to $24.69 billion, slightly beating the consensus mark by 0.1% [2] Segment Performance - Media and Entertainment Distribution, accounting for 44% of total revenues, saw an 8.9% year-over-year increase to $10.87 billion [3] - Linear Networks revenues declined 6.6% year over year to $2.61 billion, while Direct-to-Consumer revenues increased 9.5% to $6.07 billion [3] - Content Sales/Licensing and Other revenues grew significantly by 33.8% year over year to $2.18 billion [3] - Parks, Experiences and Products revenues rose 3.1% year over year to $9.41 billion, with domestic revenues at $6.43 billion (up 2.1%) and international revenues at $1.64 billion (up 11.5%) [4] - Consumer Products revenues decreased 1.6% year over year to $1.33 billion [4] Subscriber Metrics - Disney+ had 124.6 million paid subscribers as of December 28, 2024, up from 122.7 million in the previous quarter [5] - Domestic average monthly revenue per paid subscriber increased from $7.7 to $7.99, while international revenue per subscriber rose from $6.78 to $7.19 [5][6] Operating Income - Total costs and expenses remained flat at $20.61 billion, with segmental operating income increasing 30.5% year over year to $5.06 billion [7] - Media and Entertainment Distribution's operating income surged 94.9% to $1.7 billion, while Linear Networks' operating income declined 11.2% to $1.09 billion [7][8] - Direct-to-Consumer operating income improved to $293 million from a loss of $138 million in the prior year [9] - Parks, Experiences and Products' operating income was $3.11 billion, up 0.2% year over year [10] Financial Position - As of December 28, 2024, cash and cash equivalents were $5.48 billion, down from $6 billion [13] - Total borrowings decreased slightly to $45.3 billion from $45.81 billion [13] - Free cash flow for the quarter was reported at $739 million [13] Future Guidance - For fiscal 2025, Disney anticipates high-single digit adjusted EPS growth and over $15 billion in cash from operations [14] - The company expects a modest decline in Disney+ Core subscribers in Q2 fiscal 2025 and anticipates segment operating income growth in Entertainment [14][15] Market Sentiment - Estimates for Disney have trended downward, with a consensus estimate shift of -7.66% over the past month [16] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [18]

Financial Data and Key Metrics Changes - AMC's revenue in Q4 2024 increased by 18% year-over-year, reaching a post-pandemic record of $1.3 billion [9][26] - Adjusted EBITDA for Q4 2024 was $164.8 million, more than triple the adjusted EBITDA reported for Q4 2023, reflecting a 240% increase [10][30] - The company generated over $200 million in cash from operating activities and $114 million in free cash flow in Q4 2024, marking the highest quarterly cash flow post-pandemic [11][31] Business Line Data and Key Metrics Changes - Attendance reached over 62 million guests in Q4 2024, a 20% increase compared to Q4 2023, setting a post-pandemic record [12][25] - Food and beverage revenue per patron reached an all-time fourth quarter record of $7.15, while admissions revenue per patron was $11.56, the second highest for Q4 [25][26] - For the full year 2024, AMC achieved all-time records for admissions revenue per patron, food and beverage revenue per patron, and total revenue per patron [13] Market Data and Key Metrics Changes - The domestic industry box office increased from $3.6 billion in the first half of 2024 to $5.1 billion in the second half, indicating a significant recovery in the market [15][16] - The overall box office for 2024 was flat compared to 2023, primarily due to the impact of strikes in the first half of the year [20][121] Company Strategy and Development Direction - AMC's "GO Plan" aims to leverage strengths and accelerate recovery by enhancing guest experiences and increasing attendance [41][42] - The company plans to invest in premium experiences, including upgrading IMAX auditoriums and adding more Dolby Cinema screens [43][44] - AMC is focused on strengthening its balance sheet while pursuing growth initiatives to enhance financial returns [56][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, projecting a potential increase in the number of wide-release films by approximately 17% compared to 2024 [19] - The company believes that the box office will grow significantly in 2025 and 2026, with expectations of $0.5 billion to $1 billion growth compared to 2024 [22][124] - Management acknowledged the challenges faced by the industry, including a 40% decline in attendance compared to pre-pandemic levels, but highlighted improvements in profit per patron [61][63] Other Important Information - AMC successfully sold approximately $65 million in movie-themed merchandise in 2024, with a profit margin around 50% [88] - The company has expanded its popcorn sales significantly, doubling sales in 2024 compared to 2023 and increasing distribution to 11,000 retail stores [102][105] Q&A Session Summary Question: Regarding the AMC GO Plan and CapEx - Management indicated that CapEx will remain around $200 million until access to growth capital is secured, with future increases flagged in advance [73][75] Question: Thoughts on streaming and theatrical releases - Management noted that some streaming services are embracing theatrical releases, which could benefit both industries, and highlighted ongoing discussions with major studios about release windows [78][114] Question: Update on merchandise and collectible items - Management reported strong sales in movie-themed merchandise and plans to increase inventory to meet demand [88][93] Question: Opportunities for negotiating longer windows for theatrical releases - Management expressed hope for longer release windows, believing it would benefit both theaters and studios financially [109][115] Question: When might the industry reach a steady state closer to pre-pandemic levels? - Management projected that the box office will grow significantly in 2025 and 2026, with expectations of blockbuster films driving attendance [124]