DIS

With the stock out of favor, investors are focused on slowing sales growth, but they may be missing the more powerful story of how efficiently Netflix is compounding profit per share. If you've looked at Netflix (NFLX) stock recently, you've probably seen the damage. The shares are down 42% over the last year, and the narrative is dominated by fears of slowing growth, intense competition, and wavering user engagement. It’s a story of a maturing giant whose best days are behind it. But beneath the gloomy headlines, a different story is unfolding, driven by one under-appreciated number. It’s the gap between the company’s sales growth and its earnings-per-share growth. Over the past three years, Netflix’s revenue has compounded at 13.7% annually. Its earnings per share, however, have compounded at 50% per year. That isn't a typo or an accounting trick; it’s the result of financial factors working behind the scenes. Two forces are driving this performance: the primary engine is a significant expansion in profitability, supplemented by a steady, disciplined reduction in the share count. While margin expansion has been the larger contributor to earnings growth, the 5.2% reduction in shares outstanding over the past three years ensures that every dollar of that increased profit is distributed across a smaller base, compounding the benefit for shareholders. Netflix’s operating margin has climbed consistently over the last three years—rising from 16.8% to 22.5%, then to 27.7%, and reaching approximately 29.7% over the last twelve months. While the pace of year-over-year margin expansion has naturally moderated as the company scales toward higher efficiency levels, the trend remains resolutely upward. Each dollar of revenue is now generating significantly more bottom-line profit, and by returning cash to shareholders, the company is ensuring that profit is divided among fewer slices, amplifying the return for each remaining share. This is why the market’s focus on top-line growth may be misplaced. The primary risk priced into the stock is that Netflix can no longer deliver the high sales growth of its past. But earnings-per-share growth means it doesn’t have to. This structure allows for earnings-per-share growth through disciplined execution, even with more moderate revenue gains. For investors, a key question is how this earnings growth relates to the company's valu...

Disney has historically refused to describe in detail the revenues earned by its growing cruise ship business. Its CFO, Hugh Johnston, has declined to do so on previous earnings calls.“We don’t break out cruise ships,” explained Hugh Johnston on its Q3 call last year. But Fortune can reveal that a Disney filing in the U.K.—where its ships are based for tax reasons—reveals that cruise revenue passed the $3 billion mark last year for the first time, fuelled by the addition of a sixth ship to its fleet as part of a $12 billion expansion. Fortune reached out to Disney for comment. Disney’s ships look more like floating theme parks than cruise liners. They are filled with cuddly characters, Broadway-caliber shows and water slides with screens set into the tubes to tell stories about Mickey Mouse while riders rocket past on rafts. The ships are part of Disney’s Experiences division, which also includes its theme parks and is the company’s biggest cash cow. Experiences generated 57% of Disney’s $17.6 billion operating income in 2025 and nearly 40% of its $94.4 billion revenue. However, the company’s financial disclosures in the U.S. don’t break out numbers for the cruise line. Instead, the company only gives general guidance on its performance in its earnings calls and releases. However, filings for a subsidiary in the U.K.—which, perhaps deliberately, does not use the “Disney” name—shine a spotlight on the success of Disney’s cruise line. Although Disney’s cruise line is headquartered near its theme park complex in Orlando, Florida, it is directly owned by a subsidiary in London called “Magical Cruise Company.” There is a good reason for this shell structure: Shipping companies based in the U.K. benefit from a highly advantageous regulatory scheme known as Tonnage Tax. Instead of paying standard corporate tax on actual income, qualifying cruise lines pay a fixed tax rate based on the net tonnage of their fleet. Decoupling the tax liability from earnings has a particular benefit for high-margin cruise lines like Disney’s, which charges a premium for its unique experience. That’s not all. The U.K. is also the historic home of global maritime law, finance, and insurance, including the renowned Lloyd’s of London shipping insurer. Incorporating a shipping business in the U.K. gives easy access to these services, which are widely considered to be the industry’s gold sta...

Netflix (NFLX) fell 42% over the past year while growing revenue 16%, earning a 90%-confidence BUY rating with 268% upside to our target. Netflix's 29.5% operating margin dwarfs Disney's (DIS) 14.6%, and its per-subscriber monetization outpaces Spotify (SPOT), justifying its premium valuation. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Netflix didn't make the cut. Grab the names FREE today. Netflix reports Q2 2026 earnings after the close on July 16, 2026, and the stock heads into the earnings report at prices most investors never expected to see again. Our 24/7 Wall St. price target for Netflix (NASDAQ:NFLX) is $270.75, implying 268.21% upside from $73.53. Our recommendation is buy, at 90% confidence, which is unusually high for our model. This aggressive target assumes the market has mispriced a business still growing revenue in the mid-teens with expanding margins. Netflix shares are down 41.73% over the past year and 21.58% year to date, trading roughly 11% below the 52-week high of $127.75. This drawdown collided with strong operating results. Q1 2026 revenue of $12.25 billion grew 16.19% year over year, and management raised the 2026 free cash flow outlook to roughly $12.5 billion, up from $11 billion. The reported EPS of $1.23 came in missing expectations by 8.55%, but net income was inflated by a $2.80 billion Warner Bros. termination fee. Netflix guided FY2026 revenue to $50.7B to $51.7B at a 31.5% operating margin. Advertising is set to roughly double to $3 billion in 2026, with advertiser count up 70% year over year to 4,000+ clients. Live events, gaming, and the content slate (Narcos, Fincher, Gerwig's Narnia) support continued engagement. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Netflix didn't make the cut. Grab the names FREE today. Polymarket traders assign a 72.5% probability to a Q2 earnings beat and 64% to a Q2 operating margin between 32% and 34%. Our bull scenario points to $283.54 in 12 months. NFLX has declined 9.89% on average on the day of an earnings miss and 1.58% even on beats. Content amortization is first-half-weighted in 2026, the Brazilian tax dispute carries a $700 million deposit exposure, and the abandoned Warner Bros. deal removes an acceleration lever. Insider activity shows net selling across 110 recent transactions. Most insider sales a...

Netflix NFLX) has long been one of Wall Street's premier growth stories, transforming from a DVD-by-mail company into the world's leading subscription streaming platform. However, despite continued revenue growth, expanding profitability, and healthy free cash flow, Netflix shares have struggled to build momentum ahead of its Q2 report, which is scheduled for Thursday, July 16, after the closing bell. The upcoming release will give investors a fresh look at subscriber-related trends, advertising growth, operating margins, and management's outlook for the remainder of 2026. While Netflix remains fundamentally strong, expectations remain elevated, making its Q2 results particularly important. Wall Street expects Netflix to generate Q2 revenue of $12.57 billion, representing 13% year-over-year growth. On the bottom line, earnings are projected to come in at $0.79 per share, nearly a 10% increase from the prior-year period. Beyond the headline numbers, investors will likely focus on several key themes: Subscriber/revenue commentary across international markets Advertising-tier monetization Operating margin expansion Free cash flow generation Management's full-year guidance Netflix has evolved into a highly profitable business rather than simply a subscriber-growth story. As a result, margin expansion and monetization initiatives have become increasingly important drivers of the investment thesis. Management has also continued to invest in live programming, sports-adjacent content, gaming initiatives, and advertising capabilities as it seeks additional long-term growth avenues beyond traditional subscriptions. Still, adding pressure to its Q2 report is that Netflix most recently missed Q1 EPS estimates and has fallen short of earnings expectations in two of its last four quarterly reports, with an average EPS surprise of -4.79%. Image Source: Zacks Investment Research Netflix completed a 10-for-1 stock split on November 17, 2025, making shares more accessible to retail investors after an extraordinary multi-year rally. While stock splits don't change a company's underlying fundamentals, they often coincide with strong momentum and can help broaden investor participation. However, that hasn't been the case so far for Netflix. Since the split, NFLX has fallen more than 30% and recently hit a 52-week low of $70 a share in late June. With that in mind, Netflix's upco...

BURBANK, Calif., July 14, 2026--(BUSINESS WIRE)--The Walt Disney Company (NYSE: DIS) will host a live webcast to discuss fiscal third quarter 2026 financial results beginning at 8:30 a.m. ET / 5:30 a.m. PT on Wednesday, August 5, 2026. Disney will release results before the opening of regular trading on August 5, 2026 and post earnings materials at www.disney.com/investors. To access the webcast, please visit www.disney.com/investors. The webcast will be archived. Materials and webcast may include forward-looking information. View source version on businesswire.com: https://www.businesswire.com/news/home/20260714700177/en/ Contacts Ben SwinburneInvestor Relations(818) 560-4245 David JeffersonCorporate Communications(818) 560-4832

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Consolidated net sales grew 24% to a record $195 million, primarily driven by a 26% increase in maintenance products across all three trade blocks. The Americas saw 29% growth fueled by expanded distribution and a high-impact 'King of the Hill' promotional campaign with Disney and Home Depot, which yielded 75% incremental sales. Premiumization remains a key margin and loyalty driver, with Smart Straw and EZ-REACH formats now representing approximately 50% of Multi-Use product sales. WD-40 Specialist sales increased 22% globally, supported by a focused strategy on the top six products that generate 80% of the range's revenue. Management attributed a portion of the Q3 performance to advanced buying in EMEA and China as customers hedged against geopolitical uncertainty and upcoming price increases. A leadership transition was initiated to create new roles focused on strategy, innovation, and digital technologies to accelerate long-term execution. The company decided to retain its Americas home care and cleaning brands as 'harvest' assets after determining the macro environment was not conducive to a bundled divestiture. Fiscal year 2026 reported net sales guidance was raised to 10% to 12% growth, reflecting the reclassification of home care assets and strong year-to-date momentum. Management expects near-term gross margin pressure in Q4 as higher input costs from Middle East disruptions flow through production cycles. The company has implemented mid-to-high single-digit price increases in EMEA and Asia Pacific to mitigate cost inflation, with the full benefit expected in fiscal year 2027. A new 'Enduring Business Model' will launch in fiscal year 2027, committing to growing adjusted EBITDA faster than net sales through increased operating leverage. The WD-40 Specialist range is targeted for continued 10% annual growth, supported by the global rollout of the new bio-based lubricant over the next 18 months. A $1.3 million non-cash amortization catch-up expense was recorded following the reclassification of home care brands from 'held for sale' to 'held for use'. Geopolitical developments in the Middle East caused specialty chemical and base oil costs to increase by 40% to 100%, leading to a downward revision of t...

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Walt Disney stock has had a tough run over the past few years, yet both the Discounted Cash Flow (DCF) intrinsic value estimate and the market multiple checks currently point to the shares trading at a discount to those fundamentals. Walt Disney shareholders have seen the stock decline 46.1% over the past 5 years, which sets expectations low even as current valuation tools suggest more value in the business than the share price reflects. Heavy capital spending on parks and streaming can support long term cash flow, while regulatory scrutiny of ABC’s broadcast licenses and political coverage may weigh on sentiment and perceived risk. On Simply Wall St’s broader checks, Walt Disney screens as undervalued in 5 of 6 valuation tests, which leans toward the stock being cheap rather than fully priced. The issue now is whether Walt Disney’s current discount, including an intrinsic value estimate that sits about 14.7% above the market price, still offers enough margin of safety for investors after such a long period of weak returns. Walt Disney delivered -19.7% returns over the last year. See how this stacks up to the rest of the Entertainment industry. The Discounted Cash Flow (DCF) model here projects what Walt Disney’s future free cash flows could be worth in today’s dollars. Based on the latest twelve month free cash flow of about $8.5b and assumptions of gradually growing cash flows over time, the 2 Stage Free Cash Flow to Equity model arrives at an intrinsic value of roughly $112.77 per share. That compares to a current market price that implies roughly a 14.7% discount to this estimate, so the cash flow picture points to Walt Disney stock looking undervalued on this framework. The FCC review of ABC’s broadcast licenses helps explain why the price may sit below the DCF value, as investors factor in additional regulatory risk to the media business. On balance, this Discounted Cash Flow view suggests Walt Disney stock currently screens as undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Walt Disney is undervalued by 14.7%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive a...

Netflix NFLX is slated to report second-quarter 2026 results on July 16. For the second quarter, Netflix expects revenues of $12.57 billion, indicating growth of 13.5% year over year.The Zacks Consensus Estimate for second-quarter revenues is pegged at $12.57 billion, indicating growth of 13.5% year over year.On the profitability front, the company projects second-quarter operating margin of 32.6%.The consensus mark for earnings is pegged at 79 cents per share. The estimate has remained unchanged over the past 30 days. Image Source: Zacks Investment Research In the last reported quarter, the company delivered a negative earnings surprise of 7.89%. The company’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average negative surprise being 4.79%. Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote Our proven model does not predict an earnings beat for Netflix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.NFLX has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Content amortization growth is expected to have peaked in the second quarter, marking the highest year-over-year rate for the year before decelerating to mid-to-high single-digit growth in the back half of 2026. Despite this front-loaded cost structure, Netflix maintained its full-year revenue outlook of $50.7-$51.7 billion and its 31.5% operating margin target. Free cash flow guidance for 2026 was raised to approximately $12.5 billion, up from the previous $11 billion estimate, largely reflecting the after-tax benefit of the termination fee Netflix received after stepping away from its pursuit of Warner Bros. Discovery.Pricing and content investment remained central swing factors entering the quarter. Netflix raised U.S. subscription prices across all tiers in late March, with the increases taking effect for new members immediately and rolling out to existing members through the second quarter based on individual billing cycles — meaning the bulk of the pricing benefit was expected to show up in April-June results rather than the first quarter.On the co...

We recently compiled a list of the 10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts. The Walt Disney Company (NYSE:DIS) is among the most undervalued stocks. TheFly reported on June 30 that JPMorgan increased its price target on DIS to $140 from $139 while maintaining an Overweight rating on the shares ahead of the company’s fiscal third-quarter earnings results. The firm noted that investor sentiment toward Disney remains cautious due to concerns about theme park attendance and the outlook for streaming growth. However, JPMorgan believes these concerns could create an opportunity for a potential stock revaluation. The firm continues to have a positive view of DIS’s ability to drive growth through its experiences segment and direct-to-consumer business. spatuletail/Shutterstock.com On the same day, Deadline’s Max Goldbart reported that Disney+ expanded its content exchange partnership with Malaysia’s Astro through a broader agreement. Under the arrangement, Astro platforms, including Astro TV, Astro GO, and NJOI, will gain access to Disney+ titles such as Pirates of the Caribbean, Kingsman: The Secret Service, and Maleficent. In return, Disney+ subscribers in Malaysia will receive access to a selection of local Malaysian content, including films, series, and children’s programming. The deal strengthens the collaboration between both platforms by allowing audiences to access a wider range of international and regional entertainment offerings. The Walt Disney Company (NYSE:DIS) is a global entertainment conglomerate operating across media, sports, and experiences, known for its iconic brands and franchises. While we acknowledge the potential of DIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

US box office revenue in June is likely to come in higher than previously projected, potentially set

Walt Disney Co (NYSE:DIS, XETRA:WDP) is expected to report modestly improving attendance trends at its domestic theme parks in its fiscal third quarter, Bank of America analysts have projected ahead of the entertainment giant’s upcoming report. The bank’s analysts wrote that Disney's Experiences segment likely benefited from a slight improvement in US attendance compared with the fiscal second quarter, despite broader industry commentary pointing to mixed demand trends at theme parks. The analysts also noted that lower fuel prices could provide an additional boost to consumer spending through the summer months. Bank of America noted that gains from stronger attendance are expected to be partially offset by costs associated with cruise ship dry docks, though comparisons should also benefit from lower pre-opening expenses than a year earlier. Within Disney's Sports business, the bank wrote that strong viewership for the NBA Finals likely supported results, but shorter playoff series and the blackout of NFL Network programming on some distributors may have weighed on performance. In the studio segment, analysts said Star Wars: The Mandalorian and Grogu performed below expectations. Bank of America also highlighted Disney's progress in its direct-to-consumer streaming business, noting that the company has expanded margins in recent years and remains on track to achieve double-digit subscription video-on-demand margins in fiscal 2026. However, the bank expects Disney to continue investing in growth initiatives, particularly international content production, which could support subscriber and revenue growth while moderating the pace of future margin expansion. The firm maintained its fiscal third-quarter estimates for Disney, projecting revenue of $25.38 billion, operating income of $5.30 billion and earnings per share of $1.87. It also left unchanged its fiscal 2026 earnings forecast of $6.88 per share. Bank of America reiterated its ‘Buy’ rating on Disney shares and a price target of $125, above current levels of about $102, citing expected growth in streaming profitability, a recovery in parks attendance, long-term opportunities in sports, and the company's management team. The company will report its Q3 earnings on August 5.

U.S.-Iran talks continue in Switzerland, housing is out of its deep freeze, the next hot quantum stock is an AI data center play, and more news to start your day.