Walt Disney Misses on Revenues but Beats on EPS

Seth Jayson, The Motley Fool
Updated

Walt Disney (NYS: DIS) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Walt Disney missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share improved significantly.

Margins expanded across the board.

Revenue details
Walt Disney booked revenue of $10.78 billion. The 25 analysts polled by S&P Capital IQ looked for sales of $11.19 billion. Sales were 0.6% higher than the prior-year quarter's $10.72 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.80. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.80 for Q1 were 18% higher than the prior-year quarter's $0.68 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.3%, 220 basis points better than the prior-year quarter. Operating margin was 20.3%, 220 basis points better than the prior-year quarter. Net margin was 13.6%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.62 billion. On the bottom line, the average EPS estimate is $0.62.

Next year's average estimate for revenue is $42.90 billion. The average EPS estimate is $2.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,827 members out of 5,154 rating the stock outperform, and 327 members rating it underperform. Among 1,453 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,411 give Walt Disney a green thumbs-up, and 42 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walt Disney is outperform, with an average price target of $41.74.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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