Trading Disney After Fiscal Q3 2024 Performance

Disney is an entertainment giant with multiple revenue streams. Historically, investors would track its performance across TV shows and films, as well as its parks and resorts. However, now the attention is on its streaming service Disney+ which since its launch in November 2019 accumulated a $1.5 billion operating loss in its first three months. Have they finally turned a profit? 

Learn more about Disney's most recent fiscal third-quarter 2024 performance across its different divisions, including streaming and what analysts forecast for the stock below.

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Disney Fiscal Q3 2024 Performance

Here are some of the key highlights from the fiscal third-quarter 2024 earnings report from Disney: 

• Earnings per share of $1.39 vs $1.19 expected 
• Revenue of $23.16 billion vs $23.07 billion expected 
• Total operating income up 19% to $4.225 billion 
• Combined streaming business turned a profit for the first time 

Disney beat analyst expectations on most financial metrics. The highlight was that its combined streaming business, which includes Disney+, Hulu and ESPN+, turned a profit for the first time. It also beat Disney's forecast that it would happen in the fourth quarter.

The combined streaming unit's operating profit was $47 million, higher than the $512 million operating loss from the same time last year. Recently, Disney changed how it reports its segments. Disney+ and Hulu are now counted as part of its direct-to-consumer division, while ESPN now falls under its sports unit.  

Revenue for its entertainment division was up 4% to $10.58 billion with Disney+ Core subscribers up by 1% to 118.3 million and Hulu subscribers up 2% to 51.1 million. Customer growth and price increases contributed to growth in the division, even though revenue from its traditional TV networks was down 7%.  

The management team have also announced plans to spend at least $5 billion in the UK and continental Europe over the next five years to create TV shows and blockbuster movies. However, Disney's theme parks business struggled with operating income down 6% for its US parks as it struggled with higher inflation and slowing consumer demand. Its international parks saw a 13% increase in revenue to $8.3 billion. 

In 2023, Disney announced plans to double its planned investment in its parks division to $60 billion over the next ten years. While its rivals such as Comcast's Universal parks in Florida have also experienced a slowdown in the US, Disney has been embroiled in a lawsuit with Florida's Republican Governor Ron DeSantis which could affect its expansion.  

As such, the entertainment giant is no longer providing long-term forecasts for its parks division, causing some concern among investors as the stock ended lower on the day of its earnings release. This has caused some analysts to a hold rating on the stock as highlighted below. 

Disney Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an Disney stock forecast in the past 3 months, there are currently 19 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a Disney stock forecast is $145.00 with the lowest price target at $100.00. 

The average price target for a Disney stock forecast is $118.25.

An Example Trading Idea for the Disney Stock Price

An example trading idea for the Disney share price could be as follows:  

• Buy the stock on a break above $90.00 to allow for volatility. 
• Target just below the highest analyst price target of $145.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Disney shares:  
• If target is reached = $550.00 potential profit [($145.00 - $90.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as performance in its US parks division is down and the impact of its long-term investments are unclear.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Disney stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Disney Stock in 4 Steps  

With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the dashboard.
2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
3. Search for your stock in the search window at the top.
4. Input your entry, stop-loss and take profit levels in the trading ticket. 

Click on the banner below to trade Disney stock today ▼▼▼ 

Do You See the Disney Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Disney share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
• Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
• With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
• The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
• Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
• Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
• Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.