Disney continues to deliver at the box office and theme parks, yet its stock price has been stubbornly stuck in a tight trading range of $98-$110. The Walt Disney Company (NYSE:DIS) can’t seem to break out despite breaking record after record at the box office and throughout its theme parks thus far in 2018. Disney’s brands are ubiquitous and providing long-lasting, durable revenue streams that transcend theme parks, toys, merchandise, streaming initiatives and international reach. Disney’s Marvel franchise posted back-to-back record-shattering $200-plus million weekend openings at the box office for Black Panther and Avengers: Infinity War. Black Panther and Avengers: Infinity War became the third and fourth highest grossing movies of all-time domestically, respectively. Avengers: Infinity War broke through the $2 billion thresholds at the worldwide box office becoming the fourth movie to achieve that feat. If that wasn’t impressive enough, The Incredibles 2 shattered box office records during its opening weekend debut, not only shattering the previous opening weekend record for an animated film but finishing with one of the top ten openings of all-time for a film of any genre. Ant-Man and The Wasp hit theaters as the third Marvel movie thus far in 2018 and is expected to deliver very strong numbers as an ancillary Marvel film during its opening weekend.
Meanwhile Disney's Parks and Resorts are posting strong growth while shoring up its stalling Media Networks segment with a confluence of growth catalysts via streaming with Hulu (30% stake and will likely be expanded to a majority 60% stake after the Fox acquisition), BAMTech, Sling, ESPN streaming service and a Disney branded service coming in 2019 to directly compete with Netflix (NFLX). Disney is closing the gap in streaming as Hulu grows much more rapidly than Netflix and in the backdrop, ESPN and direct to consumer Disney branded streaming service comes to fruition. Disney recently reported Q2 FY2018 revenue growth across every business segment with an overall revenue growth of 9%. Disney offers a compelling long-term investment opportunity considering the growth, Fox acquisition, pipeline, Media Networks remediation plan, diversity of its portfolio, tax reform, share repurchase program and dividend growth. Continue reading "Disney Continues To Deliver"