Disney reported fourth-quarter revenue of $22.5bn, in line with the prior year ($22.7bn expected). Growth in the Sports and Experiences divisions were offset by declines in Entertainment.
Segment operating profit fell by 5% to $3.5bn ($3.5bn expected ). This was driven by a sharp decline in Entertainment, largely due to strong content sales in the prior year.
Full-year free cash flow fell by $1.5bn to $10.1bn. Net debt was $36.3bn at year-end.
In the new year, underlying earnings per share (EPS) are expected to grow at double-digit rates (9% expected).
A dividend of $1.50 per share was announced. Share buybacks are expected to double to a target of $7bn.
The shares fell 4.1% in early trading.
Our view
HL view to follow.
Disney key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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