Disney released earnings yesterday. While my first impression was I didn't think it was a great earnings release, Disney is moving forward nicely on evolving their business strategy. The decrease in earnings was expected.
One of the most challenging aspects of analyzing stocks is evaluating them when they have done acquisitions that are relatively large compared to their pre-acquisition size. Add in discontinued operations and multiple profit centers and it can be difficult Understanding Disney has all these challenges. I still have more to do sifting through the much more complicated earnings release.
I do like the strategic direction that Iger (their CEO) has established. I posted about this back in April of this year.
While the stock is getting more richly priced, it is a good one to keep your eye on. Barrons had a great article about them in their January 4, 2019 issue. Iger knew there would be some near term pressure on profits and sold his board on making steps to build Disney into a long-term stronger competitor with a keen strategic direction. This is not something I've seen lately with such short-term profit focus by many companies, but it is key to building a strong and viable business. Like a great career, companies do not always move continually up on a 45% slope. There are ebbs and flows.
Keep your eye on Disney, You might like what the "Magic Kingdom" has to offer!
