Relaxing on the couch in the evening, with some popcorn or other delicious snacks, admiring Marvel superheroes, watching a documentary or even sports. That’s not exactly my dream – but all these options are offered by the 100 year old entertainment giant Disney. And if you want to experience your Disney characters in real life, you can visit one of the five Disney parks.

Earnings exceeded expectations – revenue lagged slightly Adjusted earnings per share rose in the last quarter from $0.30 in the previous year to $0.82, exceeding expectations of $0.71. Revenue rose 5% to $21.24 billion, but lagged analysts‘ estimates of $21.41 billion.

Disney reduces loss The company’s streaming service losses, including Hulu and ESPN+, fell to $387 million from $1.47 billion in the previous year due to price increases and higher advertising revenues.

Cash flow approaches pre-pandemic level „We expect to significantly increase our free cash flow in our fiscal year 2024 compared to fiscal year 2023, bringing us closer to the level we last saw before the pandemic,“ said Disney.

Is the long-term decline continuing? Conclusion: As you can see in the chart above, the stock has lost around 50% since 2021. Short-term, however, you can see a small uptrend. Do analysts expect a further decline? A look at the analyst expectations shows a positive picture. 24 of 32 analysts recommend buying, 6 want to hold and 2 analysts even want to sell at this level. The average analyst target price is $105, but we are only 10 US$ away from that. The highest analyst target price is $145, representing a potential of 52% for you. However, keep in mind: despite the sharp price drop, the P/E ratio based on earnings estimates for 2024 is still 23.