ESPN, and largely the cable networks section of DIS, suffered a slight decrease in income as a result of higher programming and production costs, but other sections of cable networks made up for the sporting slack. In the broadcasting section, higher advertising revenues were offset by an increase in primetime network programming costs.
The most iconic part of DIS is arguably the parks and resorts section of the business. Revenues and operating income both increased 7% and 4% respectively for the quarter. According to the release, higher guest spending in domestic operations was offset by lower international operations.
DIS seems to be the king of brand recognition. Robert Iger, DIS CEO, puts it plainly in their latest quarterly release. “Our ongoing success is driven by our long-term strategy, the strength in our brands and businesses, and our high quality family entertainment.” This is evident by the continued investment in iconic brands; like the recently announced Star Wars movies.
The technical prospective is mixed. The 50 DMA is about to cross above the 100 DMA, but today’s candle may turn out to be a reversal bar and gap fill lower.
The analyst community has shifted their ratings around this morning too. CS (Credit Suisse) maintained an outperform rating, but raised their price target (PT) to $61 or about 11% from current prices. Nomura also kept their buy rating on shares and followed suit in raising their PT, but to $62.
