By
Tolu Ajiboye
February 9th, 2024
Disney stock has lost approximately 22.88 percent, 4.95 percent, and 9.18 percent in the past year, YTD, and the last three months respectively.
The Walt Disney Company (NYSE: DIS) stock closed January 9 trading at $147.23, up 3.33% from the day’s opening price. The gains extended during the pre-market trading period by approximately 7.7% in regards to yesterday’s close. The spike in Disney has been attributed to the better than anticipated first-quarter (Q1) earnings for fiscal 2022.
According to the company’s earnings report, the first fiscal earnings that ended on January 1, 2022, saw a significant uptick in earnings per share. During the quarter, Walt Disney reported diluted earnings per share of $0.63, which rose from $0.02 in the prior quarter.
“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture gives me great confidence we will continue to define entertainment for the next 100 years.”
Following the huge Coronavirus vaccines rollout, especially in the United States, Walt Disney has seen its business reopen and slowly recover from the pandemic crisis. However, with the resurgence of Omicron variance, more uncertainty lurks in the company’s near future.
Disney in Q1
Disney stock has been one of the most hit by the Covid crisis as it significantly relies on physical businesses than the online aspect. However, the company has initiated measures to diversify its earnings and sales. Among them has been to venture into the cloud and online business.
According to market data provided by MarketWatch, Disney stock has lost approximately 22.88 percent, 4.95 percent, and 9.18 percent in the past year, YTD, and the last three months respectively through Wednesday.
The company has a market valuation of approximately $259.38 billion with 1.82 billion shares outstanding. Having been rated 29 times, the MarketWatch survey shows DIS stock received an average rating of Over. Additionally, the DIS stock received an average recommendation of Overweight and an average target price of $190.26.
Forward-looking, the company has significantly readjusted to cope with the fast-changing Covid-19.
“In fiscal 2022, our domestic parks and experiences are generally operating without significant mandatory COVID-19-related capacity restrictions, such as those that were in place in the prior-year quarter; however, we continue to manage capacity to address ongoing COVID-19 considerations with respect to guest and cast health and safety. Certain of our international operations continue to be impacted by mandatory COVID-19-related capacity and travel restrictions,” the company noted.