Disney Beat Earnings but...
✅ Revenue +8% Y/Y to $23.5B
($0.2B beat).
✅ Non-GAAP EPS $0.99
($0.20 beat).
❌Media not profitable:
Can't imagine Disney produce so many good movies... but can't make a profit from them 😂
❌Jobs & Budget cuts:
- Firing 7,000 employees & slashing $5.5B in cost.
- Catch-22 here: they need to trim expenses. But at the same time, they can't grow if they are trimming.
❌ Dividends:
Reintroducing dividends when the business segments & cash flow are not stabilized yet seems puzzling. 🤔
Perhaps they need to please investors. This short-term move is bad for the company long-run.
Conclusion:
Disney is still a long way from making a comeback as a growing profitable business.
Altho Disney has a strong brand, I won't be investing it anytime soon.
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Silverbat : Buy dips and hold 126