Fast Money Blog- 5/13/22

Although the market is in a temporary pullback, from a revenue perspective, Disney really delivered this week.  On Wednesday, May 11th, The Walt Disney Company (DIS) reported Q2 2022 earnings.

Total top-line revenue came in at $19.25 billion, up 23% year-over-year.

Here’s how it broke down:

The Disney Parks, Experiences and Products revenue for the quarter increased to $6.7 billion, a growth of more than 110% year-over-year.

In the Direct to Consumer segment (which includes Hulu, ESPN+ and Disney+), revenue for the quarter grew 23% year-over-year to $4.9 billion.  The company reported that their Disney+ streaming service added 7.9 million new subscribers for a total of 133.7 million, up 33% from the prior year.

However, Disney’s other streaming properties didn’t do as well, with Hulu adding only 300,000 new subscribers and ESPN+ adding only 1 million.

In closing, Disney CFO, Christine McCarthy, warned that the tough economic environment, enhanced by inflationary pressures, supply chain disruptions and a tight labor market, could hurt margins in the near future.

I see Disney stock as the perfect long-term hold. I expect to see major growth over the top and bottom lines in 5 years.

Tyrone Jackson

The Wealthy Investor