Disney Shares Hold Steady After-Hours

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DIS is flat for now.

Walt Disney Co (DIS) shares were down almost 2% after-hours but now they are trading flat. Profit beat the Street but revenue fell short. However with the new Star Wars Ep 7 coming how can they fail at this point?

Last week advance ticket sales went on sale for Star Wars Ep. 7 The Force Awakens. The result? We don't know for sure yet but it was huge and the analysts all agree we are looking at perhaps the biggest money making movie of all time. 

Morgan Stanley’s Benjamin Swinburne expects the upcoming flick to bring in $650 million in the U.S. alone, and a total of $2 billion globally. A recent report from RBC Capital Markets, meanwhile, gives similar projections and points to Disney’s “strong marketing and promotion across all of its divisions” as a harbinger of the movie’s impending success. “…There is no question on whether or not the film will be profitable, but rather how big it could end up being,” says the report. (Already, the six episodes in the Star Wars saga released so far have brought in $7.3 billion in inflation-adjusted dollars.)

About the earnings call and the highlights:

Bottom line: Disney Q3 profit beats; revenues miss despite 9% growth

  • EPS rose 10% on a GAAP basis and 35% on a non-GAAP basis, to $1.20. CEO Bob Iger noted fiscal 2015 brought "the highest revenue, net income and adjusted EPS in the company's history."
  • Revenues by segment: Media Networks, $5.83B (up 12%); Parks & Resorts, $4.36B (up 10%); Studio Entertainment, $1.78B (flat); Consumer Products, $1.2B (up 11%); Interactive, $347M (down 4%).
  • Again, Interactive was the revenue disappointment, though its operating income rose 72% to $31M. In operating income, Studio Entertainment more than doubled, to $530M; Media Networks was up 27%, to $1.8B; Parks and Resorts posted $738M (up 7%)and Consumer Products $416M (up 10%).
  • Earlier today, the company noted it was adding its TV networks to PlayStation Vue streaming service after months of negotiation.

DIS The Walt Disney Company daily Stock Chart