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3 weeks ago
Activist investor Nelson Peltz sells entire Disney stake after proxy battle loss
By: Yahoo | May 30, 2024
Activist investor Nelson Peltz has sold his entire Disney (DIS) stake, according to a source familiar with the matter.
Peltz sold his position at a price of around $120 a share, which yielded a return of about $1 billion, the source said.
The development, first reported by CNBC, comes after Disney successfully fended off Peltz in his quest to secure board seats at the company, officially ending a highly contested proxy battle that plagued the entertainment giant for months.
Peltz had been fighting to secure board seats for himself and former Disney CFO Jay Rasulo but was ultimately unsuccessful. At the company's annual shareholder meeting in early April, Disney said the current board would remain intact following a stockholder vote that gave the company's slate a win "by a substantial margin."
Disney did not immediately respond to Yahoo Finance's request for comment.
Peltz's hedge fund, Trian Fund Management, had owned $3 billion of common stock in Disney (including the shares owned by former Marvel Entertainment chair Ike Perlmutter). The activist renewed a push to shake up Disney's board last year as the stock price hit multiyear lows.
At the time of the shareholder meeting, Peltz said prior to the announcement of the results that regardless of the outcome of the vote, Trian would be watching the company's performance.
"The long-term track record still remains disappointing," he said at the time.
Disney shares are up about 12% since the start of the year but have fallen roughly 15% since the company defeated Peltz in its proxy fight.
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JJ8
1 month ago
Unfortunately I don't have time to check but part of the many stocks in my port.
Furthermore, I had this investment taken as one for the long term.
Now, half of my profits have disappeared already.
Disney share price now under the SPREAD TRIPLE BOTTOM BREAKDOWN mode since 7-May-2024.
This is the reality currently. And I will keep it still a long term commitment.
Should it continue in this mode, I intend to buy more, as well. C'est La Vie, Mt. Blanc!
Cheers & Better Luck To All
DiscoverGold
1 month ago
Disney Surpasses Fiscal Q2 Earnings Expectations
By: James Hyerczyk | May 7, 2024
Key Points:
• Disney EPS of $1.21 beats estimates, revenue at $22.08B.
• Streaming loss narrows significantly, down to $18M.
• U.S. parks revenue up 7%, international sales jump 29%.
Disney Earnings Top Estimates
Disney has surpassed analyst expectations in its fiscal second-quarter earnings, significantly narrowing its streaming losses while maintaining steady overall revenue. This financial update underscores a notable improvement in Disney’s streaming operations and continued strength in its experiences segment.
Daily The Walt Disney Company
Earnings Overview
Disney’s earnings per share for the quarter stood at $1.21, adjusted, which exceeded the Wall Street expectations of $1.10. While total revenue reached $22.08 billion, aligning closely with projections of $22.11 billion, the highlight was the improved performance in streaming. Disney+, Hulu, and ESPN+ collectively reduced their losses dramatically to $18 million, compared from a substantial $659 million loss the previous year. This was largely due to Disney+ and Hulu turning a profit for the first time.
Streaming and Subscribers
The entertainment streaming segment, excluding ESPN+, saw a 13% revenue increase to $5.64 billion, with an operating income shift from a $587 million loss last year to a $47 million gain this quarter. This was attributed to a rise in Disney+ subscribers and a higher average revenue per user. Disney+ Core’s subscriber count rose to 117.6 million, while Hulu’s subscribers increased slightly to 50.2 million. However, ESPN+ experienced a decline in subscribers by 2%.
Parks and Experiences Growth
The U.S. parks and experiences sector witnessed a 7% revenue rise to $5.96 billion, while international sales surged 29% to $1.52 billion. This growth was driven by increased attendance and higher pricing at the Hong Kong Disneyland Resort, emphasizing Disney’s recovery in physical experience spaces post-pandemic.
Challenges in Traditional Media
Contrasting with the streaming success, Disney’s traditional TV business faced challenges, particularly with ESPN. Despite a revenue rise by 3% to $4.21 billion, operating income for ESPN dropped by 9% due to lower advertising revenue, declining cable subscribers, and increased costs linked to broadcasting the College Football Playoff.
Market Forecast
Looking forward, Disney’s strategic focus on streamlining its streaming operations and enhancing its experiences sector might provide a bullish outlook for the company’s stock in the short term. However, the ongoing struggles in its traditional TV business could temper this optimism unless significant adjustments are made.
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2 months ago
Disney (DIS) Stock Hoping For Another Post-Earnings Pop
By: Schaeffer's Investment Research | May 3, 2024
• Disney stock has scored a positive post-earnings reaction in four of its last eight reports
• DIS options traders are betting bullishly ahead of the event
Apple (AAPL) is propping up the Dow to end the week after the tech titan's blowout corporate report. The next blue-chip to step into the earnings confessional will be Walt Disney Co (NYSE:DIS), set for its quarterly report before the market opens on Tuesday, May 7. Ahead of the event, options traders are betting bullishly, perhaps hoping the stock's recent post-earnings history skews to the upside.
Walt Disney stock closed higher the session after earnings in four of its last eight quarters, but finished positive after its last three, including a 11.5% pop in February. The shares averaged a 6.5% swing, regardless of direction, after their last eight earnings events. This time around, the options market is pricing in a larger post-earnings move of 7.5%.
DIS was last seen trading at $113.79, up 1% on the day. The shares are up 26% in 2024, with their 7% quarterly drawdown finding historical support at the site of that post-earnings bull gap from February. Don't expect much unwinding of pessimism from the blue-chip next week, considering there's only one "sell" rating on the stock, and a slim 1.1% of its total available float is sold short.
Echoing this, at the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DIS' 50-day call/put volume ratio of 2.30 sits higher than 93% of readings from the past year. But with the equity sporting a Schaeffer's Volatility Scorecard (SVS) of 16 out of 100 -- which indicates consistently realized lower volatility than its options have priced in -- a premium-selling strategy could be the move for the entertainment giant.
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