NYSE$DIS

Walt Disney · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Disney's financial performance showed encouraging signs of recovery with theme park reopenings, increased studio production, streaming service success, and sports rights deal expansions.

The Walt Disney Company reported a mixed second quarter for fiscal year 2021. While diluted EPS increased to $0.50 from $0.26 year-over-year, and revenue reached $15.613 billion, the company continued to be impacted by COVID-19, particularly in its Parks, Experiences and Products segment. The growth in streaming services and improved results in Direct-to-Consumer mitigated some of the negative impacts.

  • Diluted earnings per share (EPS) from continuing operations increased to $0.50, up from $0.26 in the prior-year quarter.
  • Excluding certain items, diluted EPS increased 32% to $0.79 from $0.60 in the prior-year quarter.
  • Revenues for the quarter totaled $15.613 billion, a 13% decrease compared to $18.025 billion in the prior-year quarter.
  • The Disney Parks, Experiences and Products segment was significantly impacted by COVID-19, with an estimated $1.2 billion impact on operating income compared to the prior-year quarter.

Headline financials

Total Revenue

$15.6B

Previous: $18B-13.3%
EPS (adj)

$0.79

Previous: $0.60+31.7%
Capital Expenditures

-$1.53B

Previous: -$2.59B+40.8%
Free Cash Flow

-$629M

Previous: -$2.13B+70.4%
Net Income

$901M

Previous: $460M+95.9%
Operating Income

$2.47B

Previous: $2.42B+2.0%
Gross Profit

$15.6B

Previous: $18B-13.3%
Cash & Equivalents

$15.9B

Previous: $14.3B+10.8%
Total Assets

$200B

Previous: $206B-2.9%
Stock-Based Comp

$136M

Previous: $131M+3.8%

Revenue & EPS history

Disney · Revenue · Quarterly

$15.6B

Q2 2021-13.3%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Disney · $22.4B total across 3 segments · Q2 2021

  • Entertainment
    $12.4B
  • Sports
    $6.75B
  • Experiences
    $3.17B

Forward guidance

The company did not provide specific forward guidance, but the earnings report suggests optimism due to the reopening of theme parks and resorts, increased production at studios, and the success of streaming services.

Tailwinds

  • Reopening of theme parks and resorts indicates recovery in the Disney Parks, Experiences and Products segment.
  • Increased production at studios suggests a strong pipeline of content for distribution.
  • Continued success of streaming services highlights growth in the Direct-to-Consumer segment.
  • Expansion of multiyear sports rights deals for ESPN and ESPN+ provides long-term growth opportunities.
  • Lower programming and production costs in Linear Networks, contributing to operating income increase.

Headwinds

  • COVID-19 continues to adversely impact financial results, particularly in the Disney Parks, Experiences and Products segment.
  • Theatrical releases have been delayed, shortened, or canceled, affecting film distribution revenues.
  • Disruptions in the production and availability of content persist due to COVID-19.
  • Additional costs are being incurred to address government regulations and implement safety measures.
  • Decrease in average monthly revenue per paid subscriber for Disney+ due to the launch of Disney+ Hotstar.

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 Q2 2021

Historical avgQ2 2021

+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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