Disney Q3 Earnings Highlights: Is The Stock A Buy?

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Disney reported Q3 earnings after the close on Wednesday. Disney CEO Iger Said Even Amid A Challenging Ad Market, This Quarter, We Began Seeing Early Signs Of Improvement.   #1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!  Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.

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00:00 Let's go to it. Let's get to Walt Disney here. Q3 EPS at $1.03 beats the 97 cent estimate

00:07 sales of 22.33 billion, missed the 22.48 billion estimate. Disney's Q3 23 parks experience

00:15 and product revenue was at 8.3 billion segment operating income at 2.4. Disney plus Q3 domestic

00:23 paid subscribers at 46 million down 1% quarter over quarter. ESPN plus subscribers flat here.

00:31 Disney to raise on ad free Disney now going towards 13.99 per month starting in October 12.

00:40 Also was stated that the cruise ships are at least doing well. So maybe that helps the cruise

00:45 lines today. Iger said that cruise ships are at 98% occupancy for Q4. I mean, I don't know where

00:54 you guys heard the cruise news from, but Disney of course, we'll be also exploring partnerships

01:00 for ESPN, but we'll retain control. Disney also said that it will crack down on password sharing

01:07 following Netflix lead. Now, is this the time for Disney to come back? I'm going to go on.

01:14 I'm going to, I'm going to say, I don't think this is it. This is a bad report for me.

01:17 The report wasn't good. And he talked about even, you know, traffic. I believe he talked to,

01:24 you know, travelers like at the parks and stuff showing a little bit of,

01:28 in which we had been concerned about showing a slight, you know, not softening in South Florida.

01:34 That's what the way softening tourism, that doesn't sound good either. There's nothing good

01:40 in this report. The simple fact was it was just expectations in the gutter. And the reason it

01:45 popped was they said the cost cutting measures were going well. They were above, they thought

01:48 they were going to be able to cut costs even more. So literally bought the hell out of this stock,

01:53 not because the company's doing well, because they're cutting costs. I mean, you cut costs

01:58 when your business is not doing well. That's when you're focusing on that. So I absolutely

02:04 just think this was a terrible report. It popped. It went to where it should have though.

02:11 I talked about this on the closing print. I mean, look at that 85, 85 and a half area. I don't know

02:17 that if it caught your eye at all, but I mean, you got a, you got a half a dozen lows around the 85

02:23 to 85 and a half area. The overshoot took it to 84, 63. I don't know what someone's doing buying

02:30 this at 93, 92, 80. That's crazy. And it's absolutely crazy. That's an eight point move.

02:40 Off it, but I'm still just going to keep it simple on this one. I don't know what's going to happen

02:45 today, tomorrow, the next thing. 85 is great support. So I don't have a problem if you're

02:50 trying to longer term trade, because it could turn out really well. But when will this hold a 90 bid?

02:56 Not just resistance, not just popping over and closing. The buyers, the 85 buyers, are they

03:03 going to step up to 90 or are they waiting to buy more at 80? And I don't think this is enough of

03:09 a good enough report to say, okay, we got to own this. We got to start our massive position

03:16 over 90. So I think patient buyers underneath and for today's session,

03:21 90, 71, 81, that's still two bucks away. That splits a pair of highs from July 13th and 14th.

03:29 There was also a comment on the dividend. Do you have that Mitch? Because I do believe that the

03:36 dividend was mentioned on the call. I don't have the dividend comment. I don't have the dividend

03:39 comment. I should look it up here. No, there's no imminent date. But I believe it was mentioned

03:43 that they were pushing for the end of this year to reinstate the dividend. That was always the goal.

03:48 I think it was said. I didn't listen to the call, so I'm just looking through the highlights,

03:52 but some people are saying that it was said. I can't confirm that or not, but they're also

03:57 saying that might be the reason that the stock was really popping too. I think the stock, at least

04:03 from what everyone was writing about, was popping based off of the crackdown on password sharing

04:09 and the mentions of getting more money from their ad-free Disney Plus.

04:15 They're raising the price. I don't think it was the dividend outlook, but that's just what I would

04:19 think from the headlines. They raised the price to the $13.95 a month, and I don't know what I'm

04:25 paying right now. $13.99, and that's the ad-free. I'm not talking... So inside scoop here for me,

04:32 I'm going to cancel my subscription to Disney Plus. It's that bad. The Disney Plus is not worth

04:37 $13.99. Netflix is totally worth it. Way more content. There's not enough content there.

04:42 The content on there is good, but like I said, they don't get new stuff. I already considered

04:46 canceling it. Disney Plus is an epic disaster. They could not be doing worse on this. They have

04:54 no new content. Now you're jacking up the price. I don't like anything about that.

04:59 So they popped it on. They're popping up that news. I think it's very ignorant because I think

05:04 you're going to see people cancel the subscription. It's not like, "Oh, Netflix, I need this." No,

05:09 you don't need the Disney Plus. There's not that much to watch on there. The stuff that's on there

05:13 is pretty good, but there's not enough content. Listen to the show, Iger. Listen to our show.

05:18 You're doing it all wrong. You cut back on putting content on there, not focusing on it.

05:24 Why would you cut back on content?

05:26 Netflix, go all in, man. Don't sit around here and now we're cutting costs. Now we better not.

05:33 You get two new shows on there a week. There's nothing to watch. Disney Plus is absolute junk.

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