NYSE$DIS

Walt Disney · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Disney's Q4 2020 earnings were impacted by COVID-19, with significant losses in Parks, Experiences, and Products segment, offset by growth in the Direct-to-Consumer business, particularly Disney+ subscriptions.

Disney reported a loss per share of $0.39 for the fourth quarter of fiscal year 2020, compared to an income of $0.43 in the prior-year quarter. Revenues decreased by 23% to $14.71 billion. The COVID-19 pandemic significantly impacted the Parks, Experiences, and Products segment, while the Direct-to-Consumer business, led by Disney+, showed strong growth.

  • Diluted EPS from continuing operations was a loss of $0.39, compared to income of $0.43 in the prior-year quarter.
  • Revenues decreased by 23% to $14.71 billion, primarily due to the impact of COVID-19 on Parks, Experiences, and Products.
  • Disney+ had more than 73 million paid subscribers as of the end of the fourth quarter.
  • The most significant adverse impact from COVID-19 was approximately $2.4 billion on operating income at the Parks, Experiences and Products segment.

Headline financials

Total Revenue

$14.7B

Previous: $19.1B-23.0%
EPS (adj)

-$0.20

Previous: $1.07-118.7%
Capital Expenditures

$729M

Previous: $1.31B-44.3%
Net Income

-$710M

Previous: $777M-191.4%
Operating Income

$606M

Previous: $2.5B-75.8%
Gross Profit

$3.69B

Previous: $7.27B-49.2%
Cash & Equivalents

$17.9B

Previous: $5.42B+230.6%
Total Assets

$202B

Previous: $194B+3.9%
Stock-Based Comp

$137M

Previous: $120M+14.2%

Revenue & EPS history

Disney · Revenue · Quarterly

$14.7B

Q4 2020-23%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
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

The company did not provide specific financial guidance for future periods.

Tailwinds

  • Continued growth in the direct-to-consumer business, particularly Disney+.
  • Resumption of some film and television production.
  • Reopening of parks and resorts, albeit at reduced capacity.
  • Potential for deferred sports programming to boost future advertising revenue.
  • Cost-saving measures implemented in response to COVID-19.

Headwinds

  • Ongoing impact of COVID-19 on Parks, Experiences, and Products.
  • Uncertainty regarding the timing and extent of park reopenings and capacity restrictions.
  • Potential for additional costs related to safety measures and government regulations.
  • Continued disruption in the production and availability of content.
  • Adverse impact on advertising sales at Media Networks and Direct-to-Consumer & International.

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 Q4 2020

Historical avgQ4 2020

+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