Walt Disney Q3 FY22 Results: Shares Jumped 9% as Number of Subscribers Increased
Disney reported its third-quarter results this week, and both the topline and bottom line were higher than estimates. The increase in subscriber count was the key highlight of Disney's quarterly results. Walt Disney's share price has rallied post the recent announcement this week. However, in 2022, Disney's share has lost one-fourth of its value.
Walt Disney Q3 FY22 Results: Key Highlights
- Revenue: $21.5 billion, higher than expectation
- Operating Income: $2.19 billion, 100% growth YoY
- Subscriber count: 152.1 million
Let us look at Disney's quarter results in detail:
Walt Disney Q3 FY22 Results: Revenue Beats Estimates
For the third quarter, Walt Disney reported revenue of $21.5 billion, higher than the Street estimate. Analysts' have earlier estimated revenue of $21 billion.
Walt Disney Q3 Earnings 2022: Operating Income
The company reported an operating income of $2.19 billion, a growth of 100% year on year. The Earning Per Share (EPS) stood at $1.09 against an estimate of $0.96.
Walt Disney Q3 FY22 Earnings: Subscriber Addition
The company reported total Disney+ subscriptions rose to 152.1 million during the fiscal third quarter. Analysts have earlier forecasted a net subscriber count of 147 million. Hulu had 46.2 million subscribers, and ESPN+ had 22.8 million. Combining Hulu, Disney+ and ESPN+ had 221 million streaming subscribers.
Walt Disney Q3 FY22 Results: Increase in Subscription Cost
In the US, Disney+ with commercials will cost $7.99 per month starting 8 December. The price of ad-free Disney+ will rise 38% to $10.99 - an increase of $3 per month.
Walt Disney Q3 FY22 Results: Guidance
Disney lowered its 2024 forecast for Disney+ to 215 million to 245 million subscribers. It is down 15 million on both the high end and low end of the company’s previous guidance. The company had previously set its Disney+ guidance in December 2020 at 230 million to 260 million by the end of FY24.
Walt Disney Q3 Earnings 2022: Disney Parks
Disney's parks, experiences, and product division reported a revenue of $7.4 billion during the quarter, a jump of 72% from the year-ago period. Last year, in the same quarter, the company reported revenue of $4.3 billion. The company saw an increase in attendance, occupied room nights, and cruise ship sailings.
Walt Disney Q3 FY22 Earnings: Share Target Price
Based on 25 Street analysts offering targets for Walt Disney, the average price target is $136.50 with a high forecast of $160 and a low forecast of $113.
How will US market open today?
- Stock futures indicate a positive opening for the US stock market.
- Rivian in focus after strong revenue and lower than expected loss in June quarter.
- On the economic front, import prices and consumer sentiment data will be released on Friday.
How were Walt Disney's fiscal third-quarter results?
Walt Disney reported an excellent set of numbers for the third quarter. Both topline and bottomline are above estimates. Even the subscriber count is well over analysts' expectations.
What is the target price of Disney shares?
Post the June quarter result, RBC Capital has given a target price of $150 per share. The share is currently trading at $117.69 per share.
What is the PE ratio of Walt Disney shares?
As of August 10, 2022 - Walt Disney has a PE ratio of 32.67.
Is Disney a good investment?
The company has posted good quarter numbers. In the last year, the company has lost close to 35% of its share value. In 2022, 25% of its share value. This devaluation alone makes the stock attractive to bargain hunters.