Walt Disney Co. reported Q1 profit that fell substantially short of analysts’ expectations which sent the stock price to a 10% decline in after-hours trading. Putting Disney’s stock price in the $15 territory, a long way from a previous all time stock price high around $43. liteforex review Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
- However from that point Disney, like many Dow 30 members, was part of a huge run up over the next 3 years.
- For now, investors are believing in the turnaround at Disney and that’s why shares are up big on Thursday.
- In August 2011 Disney saw it’s stock price drop nearly 14% in one day after a number of multiple analysts downgraded it.
- Second, for the full fiscal year, management said it expects earnings to increase at least 20% to around $4.60 per share and free-cash-flow generation to be about $8 billion.
- Since Walt Disney’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest.
Keep in mind, when it comes to analysing a stock it’s worth noting the risks involved. For example – Walt Disney has 1 warning sign we think you Kraken Review should be aware of. DIS has an Altman Z-Score of 2.26 and a Piotroski F-Score of 7. A Z-score under 3 suggests an increased risk of bankruptcy.
In the last 12 months, DIS had revenue of $88.94 billion and earned $2.99 billion in profits. The latest short interest is 18.65 million, so 1.02% of the outstanding shares have been sold short. The number of shares has increased by 0.44% in one year. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. On top of earnings, Disney announced a $1.5 billion investment in Fortnite maker Epic Games and said ESPN will launch a completely rebuilt app over the top in fall 2025. If you had invested $1,000 in Disney’s IPO your stock today would be worth over 3 million dollars today.
Disney prevails over activist investor Nelson Peltz, ending bitter board battle
The beta is 1.41, so DIS’s price volatility has been higher than the market average. The first reason Disney stock is up is quarterly results. Revenue was flat versus a year ago at $23.55 billion but earnings of $1.22 per share easily passed the $0.99 that analysts were expecting. Cost-cutting measures have taken hold faster than expected and management said it expects to exceed its goal of $7.5 billion in cost cuts set in 2023. Corporate bonds offer yield opportunities and diversification away from equity investments. Investment-grade bonds are safer but lower yield, while high-yield bonds offer higher returns but from riskier firms.
Profit margin
Disney stock has been a part of six stock splits since the IPO,The first post IPO stock split happened in 1967 which was a 2 for 1 stock split. There were two more 2 for 1 stock splits shortly after in 1977 and 1973. The next stock split happened over a decade later in March 1986 when a 4 for 1 stock split took place. The 90s brought two more stock ifc markets splits, one 4 for 1 in 1992 and then a 3 for 1 stock split in the summer of 1998. All these stock splits work out as 1 share purchased at IPO being the worth 384 shares today. Second, for the full fiscal year, management said it expects earnings to increase at least 20% to around $4.60 per share and free-cash-flow generation to be about $8 billion.
What kind of growth will Walt Disney generate?
The next estimated earnings date is Wednesday, May 8, 2024, after market close. DIS has a market cap or net worth of $217.14 billion. Three factors drove the media stock higher and they set the company up for even more long-term success. Information is provided ‘as is’ and solely for informational purposes, not for trading purposes or advice.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Walt Disney’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Walt Disney appears to be overvalued by 26% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$122 on the market compared to our intrinsic value of $97.29. This means that the buying opportunity has probably disappeared for now.
This stock pays an annual dividend of $0.90, which amounts to a dividend yield of 0.76%. Return on equity (ROE) is 3.00% and return on invested capital (ROIC) is 2.63%. The company has a current ratio of 0.84, with a Debt / Equity ratio of 0.47.