Workflow
Mufasa: The Lion King
icon
Search documents
Disney's 'Elio' Posts Worst Pixar Opening: Here's Why Media Giant Likely Isn't Worried
Benzinga· 2025-06-23 16:26
Core Insights - The latest Pixar film "Elio" has underperformed at the box office, grossing $21 million domestically during its opening weekend, marking the worst opening for a Pixar film in modern history [1][2] - The film's total worldwide gross for the opening weekend was $35 million, including $14 million from international markets [2] - "Elio" is the only Pixar film scheduled for release in 2025, which may negatively impact Disney's comparable sales against the successful 2024 film "Inside Out 2," which grossed $1.69 billion worldwide [2] Box Office Performance - "Elio" ranked third at the box office, behind "28 Years Later" and "How to Train Your Dragon," which grossed $37 million in its second weekend, contributing to a total of $160.4 million domestically [1][3] - Five of the top ten grossing films in 2025 are kid-friendly, with "A Minecraft Movie" leading at $423.9 million and Disney's live-action "Lilo & Stitch" at $386.7 million [4][5] Future Outlook - Despite the disappointing opening of "Elio," Disney has a strong lineup of upcoming films, including "The Fantastic Four: First Steps," "Tron: Ares," "Zootopia 2," and "Avatar: Fire and Ash," which could bolster box office performance in the second half of 2025 [8][9] - Disney has already surpassed $1 billion at the domestic box office year-to-date in 2025 and aims to reach the $2 billion milestone for the second time since 2019 [7][8] Stock Performance - Disney's stock was trading down 1.07% at $116.37, with a year-to-date increase of 5.7% and a 14.8% rise over the last year [10]
3 Reasons Why Disney Stock May Be a Smart Buy After Q2 Earnings Beat
ZACKS· 2025-05-13 13:26
Core Viewpoint - Disney has reported strong second-quarter fiscal 2025 results, surpassing earnings and revenue estimates, indicating robust momentum across its business segments [1][2]. Financial Performance - Adjusted earnings per share (EPS) increased by 20% to $1.45 compared to $1.21 in the same quarter last year [2]. - Total segment operating income rose 15% to $4.4 billion from $3.8 billion in the second quarter of fiscal 2024, while revenues grew 7% to $23.6 billion [2]. Strategic Execution - The results reflect successful execution of four strategic priorities: exceptional creative content production, streaming profitability, evolving ESPN into a leading digital sports platform, and driving long-term growth in the Experiences segment [3]. Segment Performance - The Entertainment segment saw operating income surge 61% to $1.3 billion compared to the prior-year quarter, driven by the profitability of the Direct-to-Consumer business [4]. - Direct-to-Consumer operating income increased by $289 million to $336 million, with Disney+ and Hulu achieving a combined 180.7 million subscriptions, including 126 million for Disney+ alone [5]. Future Projections - The Zacks Consensus Estimate projects fiscal 2025 revenues of $94.88 billion, indicating a 3.86% year-over-year growth, with earnings expected to increase 13.28% to $5.63 per share [6]. Streaming and Content Growth - Disney has achieved significant profitability improvements in streaming, enhancing investor confidence in its long-term strategy [9]. - The company continues to deliver successful films and series, with notable box office performances from titles like Mufasa: The Lion King and Thunderbolts [10]. Upcoming Releases - Anticipated titles set to drive box office revenues and streaming engagement include live-action adaptations and sequels, such as Lilo & Stitch and Zootopia 2 [11][12]. Sports Segment Growth - ESPN experienced its most-watched second quarter in primetime ever, with viewership among the key 18-49 demographic up 32% compared to the prior-year quarter [17]. - The company is preparing to launch a new direct-to-consumer product for ESPN, further solidifying its position in the digital sports market [18]. Expansion Projects - Disney is undertaking significant expansion projects globally, creating thousands of new jobs and celebrating anniversaries for its theme parks [19]. Valuation and Guidance - Disney stock is currently undervalued at 19.25 times trailing 12-month price-to-earnings, below the industry average of 21.37 times, presenting an attractive entry point for investors [21]. - Management has raised guidance for fiscal 2025, expecting adjusted EPS of approximately $5.75, a 16% increase over fiscal 2024, and projecting around $17 billion in cash from operations [22]. Conclusion - With profitable streaming services, successful box office hits, and significant expansion projects, Disney presents multiple growth opportunities and solid financial fundamentals, making it an appealing investment option [23].
Disney Stock Is Finally Back in Action. Will new Tariffs Derail It?
The Motley Fool· 2025-05-11 08:12
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].
Mirror, mirror on the wall, Is Disney's stock the next to fall?
Finbold· 2025-03-24 10:51
Core Viewpoint - Walt Disney Co's latest live-action remake, Snow White, has underperformed at the box office, grossing approximately $87 million against a budget of $240-$270 million, leading to negative impacts on DIS shares [1][2]. Box Office Performance - Snow White's opening weekend performance is significantly below expectations, with a gross of $87 million compared to its substantial production budget [1]. - The film's performance is contrasted with other Disney remakes, such as the live-action Lion King, which grossed $569.6 million against a $240.2 million budget, and Mulan, which earned $69.9 million against a $200 million budget [4]. Factors Contributing to Underperformance - Interest in Disney remakes has been declining in recent years, contributing to the lackluster performance of Snow White [3]. - The film faced backlash related to 'woke' casting decisions, particularly regarding the casting of Rachel Zegler as Snow White, which some audiences found controversial [5][6]. - The backlash against Zegler's casting is part of a broader narrative about audience reactions to perceived 'woke' initiatives in Hollywood, although the impact of this backlash is difficult to quantify [7][8]. Boycotts and Audience Reactions - The film also faced calls for a boycott due to the casting of Gal Gadot as the Evil Queen, as her support for the Israeli Defense Forces during ongoing conflicts has drawn criticism [9][10]. - The effectiveness of these boycotts is mixed, with some films succeeding despite similar controversies, indicating that audience reactions may depend more on the core demographics than on specific actions taken by the company [11][12]. Stock Performance and Market Outlook - Disney shares are experiencing volatility, with a year-to-date decline of 10.25%, although there was a slight recovery in the most recent trading session [14]. - The impact of a single film's performance on Disney's overall stock is expected to be limited, as the company is large enough to absorb such fluctuations, and live-action remakes serve to maintain intellectual property control rather than solely generate profit [15].
Why Is Disney (DIS) Down 5.9% Since Last Earnings Report?
ZACKS· 2025-03-07 17:36
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]
AMC(AMC) - 2024 Q4 - Earnings Call Transcript
2025-02-26 00:45
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]