DIS - Embedded Expectations Analysis - 2018 03 12
The Walt Disney Company (DIS:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 16.3x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management has concerns about their expense guidance, the 21st Century Fox acquisition, and Star WarsSpecifically, management may lack confidence in their expense guidance related to Parks and Resorts, and may have concerns about further declines in pay TV subs. Furthermore, they may lack confidence in their assertion that they fulfilled three primary strategic priorities through the 21st Century Fox acquisition, and may also lack confidence in their ability to drive growth by focusing on said strategic priorities. Also, they may lack confidence in the release of their second stand-alone Star Wars movie, and may have concerns about the potential of a David Benioff and D.B. Weiss-produced series of original Star Wars films
Walt Disney is an entertainment company. The company's segments are: Media Networks, which includes domestic cable networks, broadcast television network and domestic television stations, and television production and distribution; Parks, Experiences and Products, which includes theme parks and resorts, and consumer products operations; Studio Entertainment, which includes motion picture production and distribution, music production and distribution, and post-production services; and Direct-to-Consumer and International, which includes international television networks and channels, direct-to-consumer streaming services, and other digital content distribution platforms and services.
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