Walt Disney: Color on qtr
- RBC Capital notes with a deep pipeline of IP driving momentum at the Studio and Consumer Products, the opening of the Shanghai Park in less than two years, and continuing strength in the ESPN franchise, DIS should continue to command its premium multiple on accelerating earnings growth.
- Topeka Capital notes revenues came in at $12.46B, up 7.7% YoY, and ahead of firm's projection, on a 8.2% clip higher at the Parks and a whopping 104.4% gain at the Studio. Operating expenses came in well below firm's models. There were no one-time GAAP-related items to speak of in the quarter that skewed comparability, and so FQ3 non-GAAP EPS came in at $1.28, well ahead of projection of $1.23, which was the high on the Street. Consensus was $1.16.
- FBR Capital notes Disney (DIS) reported its best quarterly earnings ever, topping firm's below-consensus estimate, which included an element of caution on cable network expenses. Some of the upside was from unpredictable benefits in the cable and studio segments. Firm's FY16 estimate for a rise in segment profit, fueled by Star Wars VII, is unchanged. This drives $97 tgt. Movie segment profits are inflecting to a much higher level. If anything, firm sees upside potential to base assumption.
- Stifel Research notes Disney reported FY3Q EPS of $1.28 (vs. $1.03) which beat estimate ($1.15) and consensus ($1.17), setting an earnings record for the second consecutive quarter ~ the favorable variance was centered on better-than-expected results for Broadcasting and Studio Entertainment. Key themes include: 1) Studio Entertainment profits increased +104% to $411 million due to continued contributions from Frozen theatrical; 2) Broadcasting profits increased +66% reflecting higher affiliate revenue and program sales; 3) Parks profits up +23% (+17% ex- Easter) on solid domestic operations; 4) Cable profits declined -7% owing to higher programming expenses and lower recognition of deferred affiliate revenue; and 5) FY3Q share buybacks totaled $1.8 billion.