Walt Disney Co Q1 2018 Earnings Results

After Monday’s Wall Street woes, The Walt Disney Company stock closed for the day at $106.17 a share before reporting their earnings for the first quarter (Q1) of fiscal year 2018 which ended on December 30, 2017. According to Bob Iger, the strategic investments made have driven meaningful growth over the long term, and TWDC remains confident in our ability to continue to deliver significant shareholder value,

“We’re excited about what lies ahead, with a robust film slate, the launch of our ESPN direct-to-consumer business, new investments in our theme parks, and our pending acquisition of Twenty-First Century Fox.” — Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company

Diluted earnings per share (EPS) for the quarter increased 88% to $2.91 from $1.55 in the prior-year quarter. Excluding a $1.6 billion one-time net tax benefit associated with new U.S. federal income tax legislation (Tax Act) and certain other items affecting comparability(1), EPS for the quarter increased 22% to $1.89 from $1.55 in the prior-year quarter.

The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the quarter 13% to $5.2 billion with income up 21 to $1.31 million.

Operating income growth for the quarter was due to increases at the domestic parks and resorts, cruise line and vacation club businesses as well as at Disneyland Paris. Domestic results benefited from the comparison to the impact of Hurricane Matthew, which occurred in the prior-year quarter.

Higher operating income at our domestic parks and resorts was driven by guest spending growth and an increase in attendance, partially offset by higher costs. Guest spending growth was due to higher average ticket prices, food, beverage and merchandise spending and average daily hotel room rates. The increase in costs was driven by labor and other cost inflation, expenses for new guest offerings and an increase in depreciation associated with new attractions.

Disney Cruise Line, growth was primarily due to higher passenger cruise days, which reflected the impact of the Disney Wonder dry-dock in the prior-year quarter. The increase at Disney Vacation Club was driven by sales at Copper Creek Villas & Cabins in the current quarter.

Growth at Disneyland Paris reflected higher attendance and increased average ticket prices, both of which benefited from the 25th Anniversary celebration.

During the conference call, it was revealed that Disney anticipates operating income from Q2 will be partially offset by the impact of a 14-day dry dock of the Disney Magic, which will adversely affect Disney Cruise Line’s operating income by about $20 million.

For more information and an overall report click over to the Q1-2018 Earnings Report.

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