NYSE$DIS

Walt Disney · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Disney's financial performance in Q2 2024 showed mixed results with revenue increase, EPS loss due to goodwill impairments, and strong adjusted EPS growth.

The Walt Disney Company reported its Q2 2024 earnings, with revenues increasing to $22.1 billion. However, diluted EPS was a loss of $0.01, though adjusted EPS increased to $1.21. The Entertainment Direct-to-Consumer business was profitable, and Disney+ Core subscribers increased by more than 6 million. The company is on track to generate approximately $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year.

  • Revenues increased to $22.1 billion, up from $21.8 billion in the prior-year quarter.
  • Adjusted EPS increased to $1.21, a 30% increase compared to the prior year.
  • Disney+ Core subscribers increased by more than 6 million, and Disney+ Core ARPU increased sequentially by 44 cents.
  • The Entertainment Direct-to-Consumer business was profitable in the second quarter.

Headline financials

Total Revenue

$22.1B

Previous: $21.8B+1.2%
EPS

-$0.01

Previous: $0.93-101.1%
Capital Expenditures

-$2.56B

Previous: -$2.43B-5.3%
Free Cash Flow

-$2.58B

Previous: -$1.16B-122.4%
Net Income

-$20M

Previous: $1.27B-101.6%
Operating Income

$3.85B

Previous: $3.29B+17.0%
Gross Profit

$22.1B

Previous: $21.8B+1.2%
Cash & Equivalents

$6.64B

Previous: $10.4B-36.2%
Total Assets

$195B

Previous: $205B-4.8%
Stock-Based Comp

$367M

Previous: $300M+22.3%

Revenue & EPS history

Disney · Revenue · Quarterly

$22.1B

Q2 2024+1.2%vs Q2 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

Disney anticipates softer Entertainment DTC results in Q3 due to Disney+ Hotstar, but expects combined streaming businesses to be profitable in Q4 and a meaningful growth driver in fiscal 2025. The new full year adjusted EPS growth target is now 25%.

Tailwinds

  • Combined streaming businesses are expected to be profitable in the fourth quarter.
  • Combined streaming businesses are expected to be a meaningful future growth driver.
  • Further improvements in profitability are expected in fiscal 2025.
  • New full year adjusted EPS growth target is now 25%.
  • Company remains on track to generate approximately $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year.

Headwinds

  • Softer Entertainment DTC results are expected in Q3, driven by Disney+ Hotstar.
  • Sports operating income declined slightly versus the prior year, reflecting the timing impact of College Football Playoff games at ESPN.
  • Third quarter’s segment operating income at Experiences is expected to come in roughly comparable to the prior year.
  • Lower theatrical distribution results as there were no significant titles released in the current quarter compared to Ant-Man and the Wasp: Quantumania in the prior-year quarter.
  • Higher film cost impairments in the current 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 Q2 2024

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro