Fast Money Blog- 11/10/23
This week on Wall Street all eyes were on Disney stock as the company released its Q4 2023 earnings results. On Wednesday, November 8th, The Walt Disney Company (DIS) reported quarterly top-line revenue of $21.2 billion, up 5% year-over-year.
As a Wealthy Investor here’s what you need to know:
Disney is divided into 3 major categories:
Disney Entertainment, which includes its entire media and streaming portfolio. Q4 revenue for this segment was $9.52 billion, up 2% year-over-year.
Experiences, which encompasses the parks business. For Q4 this segment took in $8.16 billion, an increase of 13% year-over-year.
Sports, which includes ESPN networks and ESPN+. Q4 revenue for this segment was $3.91 billion, about the same year-over-year.
The company's streaming figures did come in much stronger than expected with nearly 7 million core Disney+ net additions, bringing the total subscriber number to 112.6 million.
Streaming losses for the quarter shrunk to $387 million from a loss of $1.4 billion in the same period last year.
Disney CEO Bob Iger also stated that the company is likely to reinstate the cash dividend to shareholders before the year is out.
The company gets credit for cutting costs, no question. However, it is still losing hundreds of millions of dollars in their streaming segment each year. Right now it looks like their revenue increases are due simply due to raising their prices. They have a long way to go to be profitable.
I would not recommend Disney stock to a new investor at this time.
Stay patient, stay disciplined.
Tyrone Jackson
The Wealthy Investor