Walt Disney (NYSE:DIS)
Walt Disney (NYSE:DIS) just released the summary of its quarterly results, and things are looking up for the industry leader in entertainment. Its stock price is down 21% year-to-date, worse than the S&P 500’s 10% decline.
Stocks have suffered thus far in 2022 from the consequences of rising prices, higher interest rates, and the conflict in Ukraine. The ongoing market correction has created many compelling buying opportunities for anyone willing to hold on for the long haul. Although it may be difficult to see now, investing at today’s lows could result in substantial rewards.
In light of this, let’s examine Walt Disney’s (NYSE:DIS) stock current status to see if the company is worth investing in.
Favorable Winds for the Media Industry
On August 10th, Walt Disney (NYSE:DIS) reported earnings for the third quarter, and despite worries that high inflation would dampen consumer spending, the company delivered an exceptional performance. Its adjusted profits per share (EPS) of $1.09, equal to a 36.3% increase, surpassed projections by 10%, while the expansion of its overall sales to $21.5 billion was in line with Wall Street estimates.
The Disney Media and Entertainment Distribution division saw an increase in revenue of 11.3%, to $14.1 billion. This segment includes the company’s linear networks, direct-to-consumer streaming services, and content sales/licensing.
The number of paying customers for Disney+, ESPN+, and Hulu increased by 27.3% yearly, reaching 221.1 million. This increase was primarily due to the 31% and 53.3% increases in the number of Disney+ and ESPN+ paying customers, respectively.
Revenue from Disney Parks, Experiences, and Products jumped 70.3% to $7.4 billion compared to $4.3 billion in the same quarter a year ago, making it the quarter’s clear winner. Investors’ worries about the consumer’s health before the earnings call should be allayed by this expansion.
In addition to this impressive expansion, the company’s operating margin increased by a whopping 259 basis points to 16.6%, again driven by the success of its Disney Parks, Experiences, and Products division. Analysts on Wall Street project $82 billion in annual sales for Walt Disney, up 38.2% from the prior year, with EPS up 95.2% to $3.94. Sales are expected to increase by 11.6% next year, and earnings per share are expected to soar by 39.1%. So, it can be concluded that the entertainment industry is coping well with the present macro conditions.
Is Now the Time to Buy Walt Disney Stock?
Walt Disney (NYSE:DIS) has promising prospects for the future. Not only did the stock perform well in the third quarter, but the decline it’s seen so far in 2022 gives buyers a substantial cushion. Stock market volatility will likely persist for the foreseeable future, so they should prepare for it but keep their sights set on the long haul. Investing in Walt Disney seems like a no-brainer in light of this.
Featured Image: Megapixl @Alexeynovikov
Author Shariq Khan 
