NYSE$DIS

Walt Disney · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Disney's first quarter earnings for fiscal year 2024 were reported, showing strategic transformation progress and cost reductions.

Disney's first quarter results demonstrate progress in strategic transformation, with revenues comparable to the prior year at $23.5 billion and diluted EPS increasing to $1.04 from $0.70. The company is on track to meet or exceed its $7.5 billion annualized savings target by the end of fiscal 2024 and expects full year fiscal 2024 EPS, excluding certain items, to increase by at least 20% versus 2023, to approximately $4.60.

  • First quarter earnings reflect progress in strategic transformation and building from a position of strength.
  • Achieved over $500 million in selling, general and administrative and other operating expense savings in the first quarter.
  • Expect full year fiscal 2024 EPS, excluding certain items, to increase by at least 20% versus 2023, to approximately $4.60.
  • Continue to expect free cash flow generation in fiscal 2024 to total roughly $8 billion.

Headline financials

Total Revenue

$23.5B

Previous: $23.5B+0.2%
EPS

$1.04

Previous: $0.99+5.1%
Capital Expenditures

-$1.3B

Previous: -$1.18B-10.0%
Free Cash Flow

$612M

Previous: $98M+524.5%
Net Income

$1.91B

Previous: $1.28B+49.4%
Operating Income

$3.88B

Previous: $3.04B+27.4%
Gross Profit

$23.5B

Previous: $23.5B+0.2%
Cash & Equivalents

$7.19B

Previous: $8.47B-15.1%
Total Assets

$198B

Previous: $202B-2.2%
Stock-Based Comp

$308M

Previous: $270M+14.1%

Revenue & EPS history

Disney · Revenue · Quarterly

$23.5B

Q1 2024+0.2%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Disney · $21.6B total across 3 segments · Q4 2023

  • Entertainment
    $9.52B-25.2%
  • Experiences
    $8.16B+9.9%
  • Sports
    $3.91B

Forward guidance

Based on the strength of first quarter results as well as our expectations for the balance of the year, we expect full year fiscal 2024 earnings per share excluding certain items to increase by at least 20% versus 2023, to approximately $4.60. Further, we continue to expect free cash flow generation in fiscal 2024 to total roughly $8 billion.

Tailwinds

  • Expect full year fiscal 2024 earnings per share excluding certain items to increase by at least 20% versus 2023, to approximately $4.60.
  • Continue to expect free cash flow generation in fiscal 2024 to total roughly $8 billion.
  • Continue to expect to reach profitability at our combined streaming businesses in the fourth quarter of fiscal 2024.
  • Disney+ Core subscriber net additions of between 5.5 and 6 million in the second quarter.
  • Ongoing positive momentum in ARPU in the second quarter.

Headwinds

  • Disney+ Core subscribers decreased sequentially by 1.3 million, in line with prior guidance and reflecting a substantial price increase in the quarter as well as the end of the global summer promotion.
  • Lower advertising revenue primarily due to a decrease at the ABC Network attributable to fewer impressions and lower political advertising revenue at the owned TV stations
  • A decline in affiliate revenue due to a decrease in subscribers at our entertainment cable networks including the impact of the non-carriage of certain networks by an affiliate, partially offset by higher contractual rates
  • Lower programming and production costs attributable to a decrease at the ABC Network due to fewer hours of scripted programming in the current quarter, reflecting the impact of the guild strikes.
  • The increase in operating loss at Star was due to the airing of the ICC Cricket World Cup in the current quarter compared to the ICC T20 World Cup in the prior-year quarter

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.3%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+12.0%

Q4 2024

Best reaction

-13.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+8.5%+4.0%-0.6%
Q1 2026-6.3%-3.6%-8.7%
Q4 2025-8.0%-8.9%-4.3%
Q3 2025-2.7%-4.9%-0.3%
Q2 2025+10.9%+19.9%+23.6%
Q1 2025-2.4%-3.5%-6.9%
Q4 2024+12.0%+9.4%+10.3%
Q3 2024-4.5%-4.5%-2.3%
Q2 2024-9.5%-9.2%-13.1%
Q1 2024+11.3%+10.1%+11.1%
Q4 2023+6.8%+5.7%+9.7%
Q3 2023+4.1%+0.8%-7.4%
Q2 2023-9.7%-9.1%-10.0%
Q1 2023-1.1%-3.6%-16.2%
Q4 2022-13.6%-5.4%-7.8%
Q3 2022+8.8%+14.9%+6.5%
Q2 2022-3.1%-2.3%-7.7%
Q1 2022+6.8%+5.9%-7.5%
Q4 2021-7.4%-9.5%-12.8%
Q3 2021+1.7%-1.3%+3.4%
Q2 2021-2.3%-4.6%-0.3%
Q1 2021-1.0%-1.7%+4.0%
Q4 2020+0.4%+4.8%+27.5%
Q3 2020+9.7%+11.7%+14.5%
Q2 2020-2.2%+5.8%+19.9%
Q1 2020+0.0%-0.2%-19.3%
Q4 2019+5.1%+5.6%+12.5%
Q3 2019-2.5%+0.2%+0.4%
Q2 2019+0.1%-1.6%+3.4%
Q1 2019-0.3%-0.3%+2.0%
Q4 2018+0.8%-0.2%-4.3%
Q3 2018-1.7%-2.8%-4.9%
Q2 2018-2.4%-0.4%-0.0%
Q1 2018+0.1%-1.5%-0.6%
Q4 2017+3.6%+2.0%+3.0%
Q3 2017-3.3%-4.1%-8.7%
Q2 2017-1.6%-1.6%-6.4%
Q1 2017-0.5%-0.3%+1.3%
Q4 2016+3.2%+3.2%+10.8%
Q3 2016+2.2%+1.1%-1.7%
Q2 2016-2.9%
Q1 2016-3.5%
Q4 2015+2.1%
Q3 2015-8.7%
Q2 2015-1.2%
Q1 2015+10.2%
Q4 2014-1.1%
Q3 2014-0.7%
Q2 2014-1.1%
Q1 2014+6.3%
Q4 2013-0.6%
Q3 2013-0.2%
Q2 2013+1.4%
Q1 2013+4.0%
Q4 2012-0.4%
Q3 2012+0.5%
Q2 2012+0.1%
Q1 2012+2.2%
Q4 2011-5.4%
Q3 2011+3.6%
Q2 2011-1.2%
Q1 2010+0.9%
Q4 2010+1.0%
Q3 2010-2.5%
Q2 2010+1.3%

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