Disney To Keep Making Frozen Rain. Investors See Strong Long-Tail Sales Stream.
Disney’s, $DIS, quarter had a happy ending, thanks in part to the success of its latest animated princess musical Frozen. And investors on StockTwits.com were singing the stock’s praises Tuesday night.
$DIS basically nails it.
— Dan Starr (@DanStarr) May. 6 at 04:22 PM
$DIS What's not to like about this company? Huge earning growth; reasonable p/e; oversea theme park invest; huge share buy back..etc; marvel
— tommyrock (@tommyrock) May. 6 at 10:32 PM
The company reported after the close Tuesday. It posted second quarter EPS of $1.11, excluding non-recurring items. That was a 40% increase from the same period a year ago and easily beat consensus estimates of $0.95. Revenues rose 10% to $11.65 billion. Wall Street had expected $11.2 billion, according to the Analyst Ratings Network.
Disney shares edged half-a-percent higher in the after hours market following a brutal trading day that bathed the StockTwits’ heat map in red. Investors called for shares to rise Wednesday after Tuesday’s dust settled. Sentiment is 87% bullish, according to StockTwits’ analytics.
Just bought $DIS before earnings, which were great! Small rally after earnings but hold & watch. Slow and steady wins the race in this one!
— InItToWinIt (@InItToWinIt100) May. 6 at 04:44 PM
Disney reported double digit increases across all of its businesses and the highest quarterly earnings per share in company history—as noted by Walt Disney Chairman Robert Iger in a statement.
$DIS Great beat with double digit growth across all segments. ALL segments. Now thats how you beat. Expect to see some upgrades near term.
— PurpleBison (@purplebison) May. 6 at 05:25 PM
@harmongreg I love the Mouse! Take your fundamentals- Add Star Wars- More Avengers, More Marvel and drumroll- The SEC Network/ESPN = 100+
— BullsandBears (@bvbullsandbears) May. 6 at 05:03 PM
A big growth driver was Frozen. Studio revenues jumped 35% driven by higher unit sales of Frozen compared to Disney’s prior animated title WreckItRalph.
$DIS Disney Profit Rises as ‘Frozen’ DVD Tops Home-Video Chart #stocks #trading
— Grok Trade (@GrokTrade) May. 6 at 09:29 PM
Frozen has become a phenomenon. The movie has grossed nearly $1.2 billion world wide, according to BoxOffice.com, and only cost $210 million to make. The DVD just came out in March.
We own the Frozen DVD, Frozen movie on the Kindle, Frozen book, Frozen dresses, Frozen CD, and saw movie like 5 times. $DIS
— Ryan Detrick (@RyanDetrick) May. 6 at 09:48 PM
@RyanDetrick Funny thing about that movie is that my 15 yr old Son AND 20 yr old daughter loved it! Pleasing to All ; )
— Shelly (@Swm) May. 6 at 10:03 PM
And Disney is nowhere near the end of making Frozen rain cash. Iger said the company expects Frozen merchandise and DVD sales to take off again in the fourth quarter, around Christmas. During the conference call, Iger also said that Frozen will be one of Disney’s top five franchises well into the future. The company is developing a Frozen Broadway show, theme-park related attractions, books and the like.
“The passion for this film and these characters is so extraordinary, so well beyond what we ever even imagined, that it would be hard to believe that it wouldn’t sustain itself over a fairly long period of time,” said Iger.
Despite Disney’s results, some investors still urged caution when trading Wednesday. Disney trades at 17X 2015 expected earnings. That’s in line with peer Twenty-First Century Fox, $FOX. But it’s a little rich compared to Time Warner, $TWX, which trades below 15X expected 2015 earnings.
And multiples get taken down across the board if the market is in the midst of a correction. Tuesday’s price action soured many risk appetites.
$DIS Maker of Frozen getting frost bites after the initial AH op!!
— Art Cagney (@artsgalleryus) May. 6 at 08:14 PM
Still many investors expected that Disney would climb higher Wednesday and for the rest of the year.
$DIS nice, expect 90 before End of summer, this thing creeps slowly
— Sean Senatore (@RiskyBusinessHighProfits) May. 6 at 04:27 PM
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