Disney’s Q1 FY22 Earnings Results Webcast

[el_super]

Disney Stock Bucks Market Downturn, Rising 3% As Wall Street Applauds Quarterly Numbers, Rebound Of Theme Parks

Disney's strong quarterly numbers, especially the dramatic rebound of its theme parks, propelled a 3% gain for its stock.

t.co

Lots that have already been said here:

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Disney’s strong quarterly numbers, especially the rebound of its theme parks to 2019 levels of revenue and operating income, propelled a 3% gain for its stock despite the gloom on Wall Street.​

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Michael Nathanson of MoffettNathanson called the quarter a “massive surprise,” especially the performance of the parks unit. He maintained his “neutral” rating on the stock, however.​

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The stellar performance of the theme parks proved more than enough for Benjamin Swinburne of Morgan Stanley. [ ... ] In hailing the parks, he observed, “Disney is achieving this success despite operating below capacity and without the benefit of international tourism.”​

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Macquarie’s Tim Nollen remains a believer, with an “outperform” rating and $185 price target. “Investing in Disney shares means believing the streaming transition will succeed, and enjoying the cyclical rebound at the parks,” he wrote in a client note. “Disney is demonstrating its prowess in both areas.”​

 

[Lilofan]

Disney Stock Bucks Market Downturn, Rising 3% As Wall Street Applauds Quarterly Numbers, Rebound Of Theme Parks

Disney's strong quarterly numbers, especially the dramatic rebound of its theme parks, propelled a 3% gain for its stock.

t.co

Lots that have already been said here:

​

Disney’s strong quarterly numbers, especially the rebound of its theme parks to 2019 levels of revenue and operating income, propelled a 3% gain for its stock despite the gloom on Wall Street.​

​

​

Michael Nathanson of MoffettNathanson called the quarter a “massive surprise,” especially the performance of the parks unit. He maintained his “neutral” rating on the stock, however.​

​

​

​

The stellar performance of the theme parks proved more than enough for Benjamin Swinburne of Morgan Stanley. [ ... ] In hailing the parks, he observed, “Disney is achieving this success despite operating below capacity and without the benefit of international tourism.”​

​

​

​

Macquarie’s Tim Nollen remains a believer, with an “outperform” rating and $185 price target. “Investing in Disney shares means believing the streaming transition will succeed, and enjoying the cyclical rebound at the parks,” he wrote in a client note. “Disney is demonstrating its prowess in both areas.”​

That's unique, WDW parks doing it without international tourism.

 

[Rickcat96]

Has Disney crossed the line?​

Good read from Motley:

So, have Disney's penny-pinching practices gone too far? Is the company exhibiting insatiable greed, taking advantage of people who just miss going to Disney parks? Probably not -- at least not yet. But investors should keep an eye on management's profit motives to make sure that they don't cross the line and negatively impact Disney's brand in the long run.

Backlash against Disney CEO Bob Chapek, who replaced Bob Iger about two years ago, is strong. Some argue that Walt Disney would be turning over in his grave if he were to see his company's priority shift from imagination to profit.

However, as my writing colleague Rick Munarriz argues, long lines at Disney parks indicate that demand is outpacing supply. And for that reason, Disney could raise prices even further. It would up the cost, but it would also improve the experience at the parks. In the process, however, it would also make going to Disney parks even more unaffordable for the middle class, which goes against the vision that Walt Disney wanted.

Disney isn't at a crossroads. The magic isn't gone. But I would submit a word of caution toward investors who are celebrating Disney's blowout quarter: Keep your eyes and ears open to the attitudes of Disney customers toward management's strategies. Reading Disney blogs, subreddits, or viewing Instagram pages can be a Peter Lynch-style grassroots approach to monitoring Disney's customer satisfaction.

Similarly, listen to the Disney earnings calls. You'll learn a lot more from executives' tones and responses to questions than you will simply by reading the transcript.

I have my concerns, but Disney remains my top stock to buy for 2022 because the business is rebounding, profits are coming back, and Disney+ continues to crush expectations.

MSN

 

[Sirwalterraleigh]

There are some people who have drinking problems, that doesn’t not should it stop the majority of people who don’t from enjoying bars and drinks. There are people that can’t control what they eat, that’s doesn’t and shouldn’t stop people from enjoying food and restaurants.

So you’re going to argue that gambling isn’t well documented problem??

…good luck, Colonel
Custer

 

[ImperfectPixie]

So you’re going to argue that gambling isn’t well documented problem??

…good luck, Colonel
Custer

And apparently also that small businesses are more readily able to weather a global pandemic than their much larger, public counterparts.

 

[Sirwalterraleigh]

I could never live up to your 4.0.

That’s “4 outta 10”

 

[JMcMahonEsq]

So you’re going to argue that gambling isn’t well documented problem??

…good luck, Colonel
Custer

It’s a documented problem for a small minority of the population. Just like alcohol, just like overeating. You don’t make rules/laws/policy based on weak minded/willed small population groups

 

[Sirwalterraleigh]

It’s a documented problem for a small minority of the population. Just like alcohol, just like overeating. You don’t make rules/laws/policy based on weak minded/willed small population groups

Alcohol= not a good thing
Tobacco = not a good thing
High fructose corn syrup = not a good thing
Gambling = not a good thing
Money = not a good thing

but humans have vices cause they’re human.

but to suggest that any of this is a misconception is just silly.

and we move on to the next frivolous things to talk about.

 

[SpectroMagician]

very short sighted decisions. But Bob is likely going to leave after another year or 2 and leave the company in a terrible spot

 

[Sirwalterraleigh]

very short sighted decisions. But Bob is likely going to leave after another year or 2 and leave the company in a terrible spot

I can’t shake that one either…

 

[Nubs70]

Give the Fed time.

I think a brick wall is out there just after the 2nd rate increase.

 

[Sirwalterraleigh]

Give the Fed time.

I think a brick wall is out there just after the 2nd rate increase.

That’s not necessarily a “bad” thing…

 

[Lilofan]

Alcohol= not a good thing
Tobacco = not a good thing
High fructose corn syrup = not a good thing
Gambling = not a good thing
Money = not a good thing

but humans have vices cause they’re human.

but to suggest that any of this is a misconception is just silly.

and we move on to the next frivolous things to talk about.

A number will overeat, drink to excess, and / or win or lose big on Super Bowl Sunday. Go Rams!

 

[Sirwalterraleigh]

A number will overeat, drink to excess, and / or win or lose big on Super Bowl Sunday. Go Rams!

Aren’t you from Ohio?!?

 

[Lilofan]

Aren’t you from Ohio?!?

One that no longer is a member is a diehard Bengals fan or any Cincy team for that matter.

 

[Sirwalterraleigh]

One that no longer is a member is a diehard Bengals fan or any Cincy team for that matter.

Wait…they have fans??

 

[larryz]

Does anyone want Andor?

Rogue One was a cool pew pew space movie but had absolutely zero memorable characters.

Maybe that's 'cause everyone DIES at the end...

 

[MisterPenguin]

Maybe that's 'cause everyone DIES at the end...

That means they had a lot of memorialized characters at the end!!

 

[Sirwalterraleigh]

Maybe that's 'cause everyone DIES at the end...

You can’t sequel it…but Disney can DEFINITELY do a live action remake

 

[Touchdown]

Gaining profits by raising per cap spending while depressing attendance works really well, until it doesn’t and profits take a very quick, very steep nose dive. That happens when people feel they are being ripped off and then loudly tell all their friends keeping them away. It then takes years to build that trust back. Americans are feeling price pinched at every angle and soon interest rates are set to rise making debt more expensive.

I don’t know when we are going to reach that point with Disney but I do know it will happen at some point if they continue down this path (which they will as they are now stuck in a positive feedback loop.) Given the current environment, I feel like domestic guests are near this point but given international tourist travel is likely to increase in the near term we probably have another year or two, but I don’t know if Bob sticks along that long.