Disney Invests $1.5B In Fortnite Owner Epic Games In 'Biggest Ever' Gaming Entry, Posts Q1 Earnings Beat, Revenue Miss
Portfolio Pulse from Chris Katje
Disney announced a $1.5 billion investment in Epic Games, marking its largest foray into gaming, alongside mixed Q1 earnings. The collaboration will explore new games and an entertainment universe featuring Disney's franchises. Q1 revenue was flat at $23.5 billion, missing estimates, but adjusted EPS of $1.22 beat expectations. The company highlighted cost savings and a $3 billion buyback plan, expecting a 20% EPS growth for the full year. Disney's DTC segment showed improvement, reducing losses and projecting subscriber growth.
February 07, 2024 | 9:44 pm
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POSITIVE IMPACT
Disney's $1.5B investment in Epic Games and mixed Q1 earnings report could influence its stock. The investment marks a significant move into gaming, while the earnings report showed a revenue miss but an EPS beat. Cost savings and a $3B buyback plan were also highlighted.
The substantial investment in Epic Games signifies Disney's aggressive push into the gaming sector, potentially opening new revenue streams and growth opportunities. The mixed earnings report, with a revenue miss but an EPS beat, suggests operational efficiency. The announced buyback plan and dividend increase reflect confidence in future performance, likely positively impacting investor sentiment in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100