Walt Disney beats by $0.19, reports revs in-line, Disney+ Core subscribers increased 1% to 118.3 mln; raises FY24 EPS growth guidance to 30% from 25% (89.97)
- Reports Q3 (Jun) earnings of $1.39 per share, $0.19 better than the FactSet Consensus of $1.20; revenues rose 3.9% year/year to $23.2 bln vs the $23.08 bln FactSet Consensus.
- Disney+ Core subscribers increased 1% to 118.3 mln. In Q4, expects Disney+ Core subscribers to grow modestly.
- DTC revenue up 15% to $5.8 bln, operating loss of ($19) mln compared to ($505) mln in year-earlier period.
- Experiences revenue up 2% to $8.4 bln, operating income down 3% to $2.2 bln.
- Sports revenue up 5% to $4.6 bln, operating income down 6% to $802 mln.
- Remains on track for the profitability of our combined streaming businesses to improve in Q4, with both Entertainment DTC and ESPN+ expected to be profitable in the quarter. We continue to feel optimistic about our trajectory, with multiple building blocks for improving margins over the coming years.
- At Experiences segment, expect that the demand moderation we saw in our domestic businesses in Q3 could impact the next few quarters. While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Q4 Experiences segment operating income to decline by mid single digits versus the prior year, reflecting these underlying dynamics as well as impacts at Disneyland Paris from a reduction in normal consumer travel due to the Olympics, and some cyclical softening in China.
- Co raisesguidance for FY24, sees EPS growth of 30%, up from 25%, equating to EPS of $4.89, excluding non-recurring items, vs. $4.77 FactSet Consensus