Personal Finance

5 Key Things Investors Should Know From Disney's Q1 Earnings Call

Video streaming/internet TV concept.

Last week, Walt Disney (NYSE: DIS) reported fiscal first-quarter results that were respectable, given the tough comparables it faced, due primarily to Star Wars: The Force Awakens , and the shifting of bowl games and New Year's Day into different fiscal quarters.

This article's purpose isn't to rehash the results -- you can read my take on them here -- but to share key information discussed on the company's analyst conference call . Here are five things investors should know.

Video streaming/internet TV concept.

Image source: Getty Images.

4. More licensing of original TV programming is possible

From Iger's remarks about a potentially significant future revenue source that seems to fly under the radar of many investors:

[S]ome of that licensing [of content to video streaming services] does not have to be off network. It can be original programming, as we have done with Netflix and Marvel. The demand for Disney is huge from the consumer perspective, and from a distribution perspective.

Iger's comments were made in the context of a discussion about kids TV programming. He said the future of Disney's kids programming will probably be a blend of traditional linear cable channels; third-party licensing arrangements, including with video streaming services such as Netflix and Amazon 's Prime; and some direct-to-consumer streaming offerings. (We can probably assume this future blend holds true for the company's programming in general.) His comment quoted above was reminding investors that in addition to licensing the company's existing content, Disney can also develop original programming for licensing.

The Netflix-Marvel deal he referenced is a multiyear agreement inked in 2013 for Disney to provide Netflix with four new live-action series, each with 13 episodes, based on Marvel characters followed by a miniseries based on Marvel's The Defenders franchise. The shows started becoming available on Netflix in 2015.

5. Room for domestic park price increases (which happened on Sunday)

Iger responded affirmatively to an analyst who asked if there was a near-term opportunity to further increase single- or multi-day ticket prices:

Yes. Nothing to announce at this point, but we do take ticket pricing up on typically an annual basis and we do so in a variety of different ways. Sometimes it is redesign [of] the packages.

The news of what appeared to be imminent ticket price hikes was surely welcome news to investors, as recent financial results in the parks and resorts business appear to back up management's view that consumers weren't tapped out on this front.

Indeed, Disney just announced on Sunday that Disney World and Disneyland are increasing single-day tickets by $2 to $5 at certain times of the year and setting expiration dates with the goal of preventing overcrowding during the parks' busiest times.

10 stocks we like better than Walt Disney

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Beth McKenna has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Netflix, and Walt Disney. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More