Upcoming AWS Coverage on Viacom Inc. Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 24, 2017 / Active Wall St. announces its post-earnings coverage on The Walt Disney Co. (NYSE: DIS). The Company reported its first quarter fiscal 2017 (Q1 FY17) financial results on February 07, 2017. The Burbank, California-based Company's diluted EPS tumbled 10% y-o-y; however diluted EPS numbers beat market consensus forecasts. Register with us now for your free membership at:

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One of Walt Disney's competitors within the Entertainment - Diversified space, Viacom Inc. (NASDAQ: VIAB), reported on February 09, 2017, its financial results for the first quarter of fiscal 2017 ended December 31, 2016. AWS will be initiating a research report on Viacom in the coming days.

Today, AWS is promoting its earnings coverage on DIS; touching on VIAB. Get our free coverage by signing up to:

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Earnings Reviewed

Disney reported revenues of $14.78 billion in Q1 FY17 which came in below $15.24 billion recorded in the prior year's comparable quarter and market expectations of $15.26 billion. In Q1 FY17, segment operating income stood at $3.96 billion versus $4.27 billion in Q1 FY16.

For the quarter ended December 31, 2016, net income came in at $2.48 billion, or $1.55 per diluted share, compared to net income of $2.88 billion, or $1.73 per diluted share, in Q1 FY16. Excluding certain items, the Company reported EPS of $1.55 per diluted share in Q1 FY17 compared to $1.63 per diluted share in the prior year's same period. Furthermore, Wall Street had expected the Company to report EPS of $1.48 per share in Q1 FY17.

Segment-wise

In Q1 FY17, Media Networks segment's revenues fell 2% to $6.23 billion from $6.33 billion in Q1 FY16. The segment's operating income decreased 4% to $1.36 billion in Q1 FY17 from $1.41 billion in the prior year's comparable quarter. The Cable Networks sub-segment's operating income declined 11% y-o-y to $864 million in Q1 FY17, due to decreases at ESPN. However, the Company's Broadcasting sub-segment's operating income grew 28% y-o-y to $379 million in Q1 FY17.

The Company's Parks and Resorts segment's revenues improved 6% y-o-y to $4.56 billion in Q1 FY17 from $4.28 billion in the year ago same quarter. Furthermore, the segment's operating income rose 13% y-o-y to $1.11 billion in Q1 FY17 from $4.28 billion in Q1 FY16, primarily attributable to increases at domestic and international operations.

Disney's Studio Entertainment segment's revenues fell 7% y-o-y in Q1 FY17 to $2.52 billion. The segment reported operating income of $842 million in Q1 FY17, which came in 17% below the $1.01 billion reported in Q1 FY16. The decline in this segment's operating income was primarily due to decreases in home entertainment and theatrical distribution and a lower revenue share from the Consumer Products & Interactive Media segment, and partially offset by growth in TV/SVOD distribution.

During Q1 FY17, Consumer Products & Interactive Media segment's revenues declined 23% y-o-y to $1.48 billion. Furthermore, the segment's operating income also decreased 25% y-o-y to $642 million in Q1 FY17, primarily attributable to decreases at merchandise licensing, games, and retail businesses.

Cash Matters & Balance Sheet

In Q1 FY17, the Company's cash flow from operations decreased by $1.20 billion y-o-y to $1.26 billion. The Company attributed the decline in cash flow from operations to higher pension and post-retirement medical plan contributions in the current period. The Company's free cash flow during the quarter also fell to $220 million from $1.05 billion in Q1 FY16. As on December 31, 2016, Disney reported cash and cash equivalents balance of $3.74 billion compared to $4.61 billion as on October 01, 2016.

Share Repurchase

During Q1 FY17, the Company repurchased about 15 million shares for about $1.5 billion. Furthermore, the Company has bought back a total of 22.2 million shares for approximately $2.2 billion since the start of FY17 through the earnings date. Additionally, the Company intends to repurchase shares between $7 billion and $8 billion during full year FY17.

Stock Performance

On Thursday, February 23, 2017, the stock closed the trading session at $109.73, slightly down 0.35% from its previous closing price of $110.12. A total volume of 5.47 million shares have exchanged hands. Walt Disney's stock price rallied 13.26% in the last three months, 15.22% in the past six months, and 16.71% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.29%. The stock is trading at a PE ratio of 19.81 and has a dividend yield of 1.42%.

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SOURCE: Active Wall Street