Is Now the Right Time to Buy Disney Stock?
The Walt Disney Company (NYSE: DIS) released what can be described as a mixed fourth-quarter earnings report on Tuesday that tells a story of both growth and struggles. The stock initially jumped after the report, but it has since sagged. Disney stock is now down 48% over the past year. Is now a good time to buy?
Disney continues to make strides in propelling itself forward after the pandemic shook up its business. Revenue increased 9% in Q4 (ended Oct. 1) to $20.5 billion, but that was slightly below Wall Street's expectations. Adjusted earnings per share of $0.30 decreased from $0.37 last year and were well below Wall Street's expectations of $0.56. That was enough to send the stock plummeting. But there were some other very acute growth signs.
Parks performance was phenomenal in Q4. Sales increased 36%, and operating income increased more than 100%. CEO Bob Chapek said that demand is outpacing capacity at parks, which is a strong signal of continued strength in this segment. This was despite the Shanghai park's closure for part of the quarter.
Source Fool.com
