Disney tops Netflix

Article Excerpt

WALT DISNEY CO., $122.81, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $227.6 billion; No dividend) reported 26.3% higher revenue in the three months ended July 2, 2022, to $21.5 billion from $17.0 billion a year earlier. Excluding one-time items, the company made $2.1 billion, or $1.09 a share, in the quarter. That was up 23.7%, from $1.7 billion, or $0.80. Revenue and earnings rose, thanks mostly to strength in the company’s domestic theme parks, where operating profits are now exceeding pre-pandemic levels. The company’s cable TV and broadcast business held steady, and it managed to add 14.4 million net new subscribers to its Disney+ streaming service—well over the 10 million additions expected and the best growth the service has seen in six quarters. Notably, Disney’s total streaming subscribers of 221 million—including Disney+, Hulu and ESPN+—now exceeds Netflix’s 211 million subscribers! Walt Disney Co. is still a buy. buy…

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