Walt Disney Co. shares were rallying Thursday after the company reported a big first-quarter earnings beat.
Disney reported fiscal first-quarter adjusted EPS of $1.06 on $21.82 billion in revenue. Both numbers exceeded consensus analyst estimates of 63 cents and $20.91 billion, respectively. Revenue was up 34 percent from a year ago.
Disney reported 129.8 million Disney+ subscribers, beating analyst estimates of 125.7 million. Disney added nearly 12 million Disney+ subscribers in the quarter. Disney+ average revenue per user in the U.S. and Canada was $6.68, up from $5.80 a year ago.
Theme Park Recovery
Bank of America analyst Jessica Reif Ehrlich said Disney is “bringing back the magic” in 2022.“A big premise of our bull thesis was predicated on the recovery in Theme Parks and inherent operating leverage in the model and FY1Q results is a key validator of that view,” Ehrlich wrote.
Morgan Stanley analyst Benjamin Swinburne said Disney’s U.S. Parks revenues and margins were near record levels.
Streaming Growth Outlook Intact
Needham analyst Laura Martin said Disney’s planned $33 billion in content spending in 2022 was one of the most interesting statistics from the earnings call.“Parks results were outstanding in 1Q22, with revs doubling y/y and op inc margins of 34 percent, the highest we can remember (and DIS believes there is more upside from here),” Martin wrote.
KeyBanc analyst Brandon Nispel said Disney’s long-term growth outlook for its direct-to-consumer offerings and its highly efficient Parks business make the stock an attractive value.
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