Disney Sales Miss Estimates, Film Expenses Weigh on Results

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00:00the latest this morning coming from Disney. Shares falling short of expectations in fourth

00:03quarter expectations. Just missing those numbers this morning, posting a miss on revenue and

00:08operating income. Geetha Raganathan of Bloomberg Intelligence joins us now for more. Geetha,

00:13what jumped out for you? Yeah, I think what jumped out to me, yes, a little bit of mixed results,

00:19as you pointed out, John. But I think what investors were really looking at was 2026 guidance.

00:24And while they did reaffirm their previous guidance of, you know, double digit EPS growth,

00:29I just don't think that's enough. I think they wanted more specificity. Yes, we know that,

00:34you know, parks, the park segment is going to grow profits by, you know, high single digits. But

00:39again, I just don't think that was enough. You know, the two big things that investors are looking in

00:44a quarter in and quarter out is the parks business and the streaming business, right? Those are the

00:49biggest sources of earnings power of earnings potential at this company. And while they did

00:54guide to, again, pretty strong numbers, I think the street was looking for a little bit more.

00:59Geetha, where do you think that little bit more can come from in the coming quarters?

01:04I think both streaming and parks are a little bit underappreciated, John. So as you kind of look

01:10at, you know, let's just take the parks business. This brings in about 55 to 60 percent of profits. So

01:15absolutely the biggest element of, you know, profits and revenue at the company.

01:20And really, you know, if you look at 2026, there are just so many different drivers. You have two

01:25new cruise ships that are coming on board. We have like this big ambitious plan, 60 billion dollars

01:31in CapEx that Disney laid out over 10 years. So you have a whole host of new attractions that are

01:35coming, you know, across. There were recent price increases. So all of those should help.

01:41I think the other big source, you know, where we can see those earnings numbers go up pretty nicely

01:45is going to be on the streaming side. So we just saw Disney take up some price increases.

01:50We saw actually pretty strong subscriber numbers at Disney Plus. I mean, people weren't expecting

01:56this just kind of given the whole Jimmy Kimmel controversy and things like that. But still,

02:01you know, we saw pretty good numbers. So I think, again, as they can keep taking up those price

02:05increases, as they keep bundling and bundling with ESPN Plus with other different streamers,

02:10I think that could become a real source of earnings upside as well.