News Disney’s Q2 FY25 Earnings Results Webcast

[JAN J]

I am not an expert on investments, but my impression was that Disney was never a good dividend stock. So if you bought the stock you either were a Disney lover and wanted a piece of the magic or you thought it was a growth stock and a good chance of capital gains profit on sale. Well the high point was in 2021 at a tad short of $200 a share and after a big jump today it still is only around $110 a share. Here is something to consider in the near future, there are two big movies that were bombs. So in the next quarter or two there will be somewhere around a $200 million write down for Captain America BNW and another over $300 million write down for Snow White. Not an expert on financials but I would think these write downs are going to be a drag on profits, how do you think the stock market will react to the stock price? Just a friendly musing from an old man.

2021 was an anomaly as the market bet that people would permanently change their habits towards more home entertainment (video games, streaming etc) vs going out IN A BIG WAY! Not saying that it did not change some, but it certainly wasn't as big as they thought, and it wasn't permanent.
The stock for crossed the $100 barrier in 2015. Except for the end of 2019 (where it went up to about $140) and then 2021 (where the spike to around $200 happened), it's been pretty steadily between $100 and $120 with the odd hiccups.
Snow White and Cap will definitely be negative notes, but whether that will push it below that $100 barrier remains to be seen. Certainly not permanently.

 

[JAN J]

Excellent point. Does Disney take rooms out on inventory? It makes sense from a operational standpoint; a room is taken out of inventory, its not ever rented, no people ever in it, no housekeeping or maintenance needed while its out of inventory.

And taking rooms out of inventory of course as you say, helps with the occupancy numbers reported.

The metric seems to indicate occupied room nights, so not really a percentage.

 

[Sirwalterraleigh]

According to AI I don't entirely trust the percentage of companies that missed EPS estimates looks to be about 30% for last year. First quarter this year it was around 25%.

Don't know if I would call 1/4 rare but it is certainly a good bit less common than beating.

Well the goal is not to miss…so not a “high percentage” seem too…

There’s really no “independent watchers” when money is involved.

If there were…bad CEOs wouldn’t be allowed to appoint their own boards

 

[JAN J]

Bringing this from the Abu Dhabi thread so it's not off topic....








Again, it's *licensing* their IP, not "selling it off."

Also, there's this...



So, my source is their CFO. What's your source?

I will further add to this.
I have an uncle who lived 11 years in the UAE.

Apparently it's the normal business practice to have the rulers of the emirate invest at least 50% of the money (or sometimes 100% and a licensing agreement) so they have ownership of everything in there. So no surprise if that's the deal that Disney struck, the UAE wouldn't have it any other way. Disney's involvement would ensure authenticity. And they're not constrained by budget so they can definitely push for top notch experiences.

 

[Kamikaze]

Operation costs actually increased. So not really cost cutting.

I never said they don't cut costs.

This you?

 

[Sirwalterraleigh]

I will further add to this.
I have an uncle who lived 11 years in the UAE.

Apparently it's the normal business practice to have the rulers of the emirate invest at least 50% of the money (or sometimes 100% and a licensing agreement) so they have ownership of everything in there. So no surprise if that's the deal that Disney struck, the UAE wouldn't have it any other way. Disney's involvement would ensure authenticity. And they're not constrained by budget so they can definitely push for top notch experiences.

Right…

It’s a bad look for them. Just as the second Chinese park was.

A 75 year old trying to “globalize” on his way out as an homage to himself.

Disagree with me now…agree with me down the road. Have at it.

 

[Sirwalterraleigh]

Excellent point. Does Disney take rooms out on inventory? It makes sense from a operational standpoint; a room is taken out of inventory, its not ever rented, no people ever in it, no housekeeping or maintenance needed while its out of inventory.

And taking rooms out of inventory of course as you say, helps with the occupancy numbers reported.

Yes they do. Usually it’s for rehab on their schedule. So that’s legit.
There is no sense in taking “ownership” of rooms that can’t be physically occupied. It makes no sense to from a business standpoint.

The metric seems to indicate occupied room nights, so not really a percentage.

Divide the total occupied nights reported by the inventory over the period. Most of those numbers are fixed

 

[Mr. Sullivan]

I just think it’s hilarious that in a post Enron, post 2008 crisis world there are people who are seriously asserting that one of the largest and most observed companies is on the face of the planet are doing filing shenanigans and book cooking and somehow nobody is noticing.

Yes back in the days of a company like Enron it was very easy to do. But we have gone through quite a bit of changes as a result of various things the last 25 years that would make it very difficult for Disney to be book cooking to the extent that some people are suggesting they are.

 

[Disstevefan1]

I just think it’s hilarious that in a post Enron, post 2008 crisis world there are people who are seriously asserting that one of the largest and most observed companies is on the face of the planet are doing filing shenanigans and book cooking and somehow nobody is noticing.

Yes back in the days of a company like Enron it was very easy to do. But we have gone through quite a bit of changes as a result of various things the last 25 years that would make it very difficult for Disney to be book cooking to the extent that some people are suggesting they are.

TWDC is too big to get caught fail.

 

[Sirwalterraleigh]

I just think it’s hilarious that in a post Enron, post 2008 crisis world there are people who are seriously asserting that one of the largest and most observed companies is on the face of the planet are doing filing shenanigans and book cooking and somehow nobody is noticing.

Yes back in the days of a company like Enron it was very easy to do. But we have gone through quite a bit of changes as a result of various things the last 25 years that would make it very difficult for Disney to be book cooking to the extent that some people are suggesting they are.

You must be having a party in your head…

What really funny is you think corporations don’t twist, pull, bite and scratch every day find any advantage/loophole…and most of that is vetted and happens with frequency.

Nobody is sharing a cell with bud fox…

So is it just you “need your D”? And can’t hear anything to ruin your magic shot of it?

Or do we have to go over roughly 10,000 pro business moves, laws, benefactors, and complaining that has built upon itself since 1975?

We can start with an easy one: why didn’t markets crash and business all shutter in 2020 when things were shut down for 6 months and more in most places?

All the setup details said that is what should have happened if it’s a “watchdog marketplace”

So why didn’t it?

 

[Chi84]

You must be having a party in your head…

What really funny is you think corporations don’t twist, pull, bite and scratch every day find any advantage/loophole…and most of that is vetted and happens with frequency.

Nobody is sharing a cell with bud fox…

So is it just you “need your D”? And can’t hear anything to ruin your magic shot of it?

Or do we have to go over roughly 10,000 pro business moves, laws, benefactors, and complaining that has built upon itself since 1975?

We can start with an easy one: why didn’t markets crash and business all shutter in 2020 when things were shut down for 6 months and more in most places?

All the setup details said that is what should have happened if it’s a “watchdog marketplace”

So why didn’t it?

The government propped up many businesses, didn’t it?

 

[JD80]

This you?

Oh you got me oh boy. From a macro point of view they are not lowering spending, they are increasing. So yes they may be cutting in some areas but increasing it in others.

 

[Kamikaze]

Right…

It’s a bad look for them. Just as the second Chinese park was.

A 75 year old trying to “globalize” on his way out as an homage to himself.

Disagree with me now…agree with me down the road. Have at it.

UAE isn't the Saudis, lets be clear.

Is it a 'bad look' for all the other companies doing business in the UAE?

Was it a 'bad look' when Universal wanted to build there but later canceled it?

Or is it only a 'bad look' because Disney bad?

 

[Kamikaze]

Oh you got me oh boy. From a macro point of view they are not lowering spending, they are increasing. So yes they may be cutting in some areas but increasing it in others.

You keep saying 'macro' like you are some sort of economist.

They increase their budget (higher costs overall) while still cutting costs on the service they offer. This is still cost cutting, even if the budget is larger overall. Opening a new land and paying for that but running every attraction in the park with 1 less CM per day is still a cost cutting move, even if the overall daily budget is higher.

 

[Kamikaze]

You must be having a party in your head…

What really funny is you think corporations don’t twist, pull, bite and scratch every day find any advantage/loophole…and most of that is vetted and happens with frequency.

Nobody is sharing a cell with bud fox…

So is it just you “need your D”? And can’t hear anything to ruin your magic shot of it?

Or do we have to go over roughly 10,000 pro business moves, laws, benefactors, and complaining that has built upon itself since 1975?

We can start with an easy one: why didn’t markets crash and business all shutter in 2020 when things were shut down for 6 months and more in most places?

All the setup details said that is what should have happened if it’s a “watchdog marketplace”

So why didn’t it?

Do you really want to do COVID history lessons or are you just being obtuse as usual?

You have literally zero factual evidence that impropriety of any kind is going on here, but yet you persist.

 

[Nubs70]

Let’s extrapolate out that “4% increase”. If WDW had 10 million guests total last May-July, a 4% increase is 400,000 guests. Over 90 days, that’s 1100 more people in each park, each day. It may mean something on paper but it’s a drop in the bucket for those in and staffing the parks.

How many more hard ticket events were there last quarter compared to same quarter the previous year?

 

[JD80]

You keep saying 'macro' like you are some sort of economist.

They increase their budget (higher costs overall) while still cutting costs on the service they offer. This is still cost cutting, even if the budget is larger overall. Opening a new land and paying for that but running every attraction in the park with 1 less CM per day is still a cost cutting move, even if the overall daily budget is higher.

Take the night off, go get a beer (if you're old enough to drink).

 

[Kamikaze]

Take the night off, go get a beer (if you're old enough to drink).

Beer is disgusting.

 

[DarkMetroid567]

You keep saying 'macro' like you are some sort of economist.

okay but this is the “Disney’s Q2 FY25 Earnings Results” thread

 

[easyrowrdw]

Beer is disgusting.

*reported*