Walt Disney Company, the world leading entertainment group, producing live-action film, television, travels, and recently radio, music and online media, published quarterly earnings beating the expectations despite the loss recorded with “John Carter”.
Quarter 2 was difficult for the American company with an important loss on “Carter” which generated a 84 million dollars operating loss. They made few additional efforts and fiscal second quarter shows a 6% increase in revenue at 1.1 billion, 13% up to the consensus. Theme’s park net result bounced 53% at 222 million dollars. Earnings per share also beat the expectations at 58 cents.
Technically the stock follow an upward movement since September 2011 with 20-days moving average in support. The current level is an important point close to the USD 44.38 resistance. This level crossing will give a strong buying signal with an objective fixed on the consensus target at USD 47.
Investors could come into the security as soon as the resistance will be crossed with a 7% performance objective at USD 47. The stop loss will be positioned below short-term support at USD 42.5.
The Walt Disney Company is a media and entertainment group. Net sales (including intragroup) break down by activity as follows:
- operation of theme parks and hotel resorts (33.9%): operation, as of 01/10/2022, of 10 theme parks (35 hotels) located in the United States (Walt Disney World Resort, Disneyland Resort and Aulani; 6 theme parks and 23 hotels), France (Disneyland Paris; 2 theme parks and 7 hotels), Japan (Tokyo Disney Resort; 2 theme parks and 5 hotels), Hong Kong (Hong Kong Disneyland; 1 theme park and 3 hotels) and China (Shanghai Disney Resort; 1 theme park and 2 hotels). The group is also involved in cruise sales (Disney Cruise Line), travel organization (Disney Vacation Club and Adventures By Disney), design and development of parks and other real estate properties, and sale of consumer products (children's books, toys, game software, films, etc.);
- operation of TV and radio channels (33.4%): domestic channels (Disney Channels, ESPN, ESPN Radio, Freeform, FX Channels and National Geographic Channels) and international channels (Disney, ESPN, Fox, National Geographic and Star). The group is also developing film post-production and website operation businesses;
- video streaming (23.1%);
- audiovisual content production and distribution (9.6%): TV programs, animated films, TV series, music, live entertainment, etc.
Net sales are distributed geographically as follows: Americas (81.5%), Europe (10.4%) and Asia/Pacific (8.1%).