Walt Disney (DIS, Financial) has a very diverse business and each of those segments have contributed to the monumental rise in its share price. The company has been performing well as of now, but many investors doubt its future potential. However, I think that Disney still has more upside and is a good buy for the long term. Let’s take a look at the bullish case for Disney.
Growing consistently
For the final quarter, revenue climbed by 7% from a year back to $12.4b, on account of revenue growth in four of the organization's five portions. Segment operating income climbed 12% to $2.78b, started by a 20% ascent in operating income in the Parks and Resorts sector. Net income for the quarter climbed by 8% to $1.50b, and earnings per share jumped 12% to $0.86. At the point when barring a $0.03 charge related with the hindrance of radio FCC licenses for the quarter, alongside unprecedented things from the prior year, EPS climbed by 16% to $0.89. Operating cash flow for the quarter bounced by 14% to $3.11b, while free cash flow climbed by 17% to $2.04b.
For the full financial year, revenue climbed by 8% to hit a record $48.8b. The company saw revenue development in every one of the five operating sectors for financial 2014. Segment operating income climbed 21% to $13.0b, on account of changes in each of the five sectors. Net income climbed by 22% to a record $7.5b. EPS rose 26% to a record of $4.26. This change in EPS came about because of enhanced execution in all sections, a diminished share check, and speculation picks up. At the point when stripping out $0.05 every share in exceptional things amid the financial year, income every share climbed by 27% to $4.32.
Star Wars
Disney bought Star Wars franchise for $4 billion and now it looks like a bargain. The top three YouTube previews of “Star Wars Episode VII: The Force Awakens” have had over 50 million views to date. This new Star Wars franchise will open up various kinds of new avenues for Disney. With Disney having amusement parks, toy making, games, stock and media plots that are unrivaled by any organization on the planet, Disney can simply perform more and drain more cash out of the franchise than whatever other organization.
Star Wars has been an extraordinary franchise from the earliest starting point. From fan fiction to rich permitting arrangements, there has dependably been a route for us fans to express our adoration for the Star Wars universe as Lucasfilm gathers authorizing checks.
In 2008, two years after Star Wars: Episode III –Â Revenge of the Sith finished the "prequel" set of three, Lucasfilm discharged a vivified film to proceed with the story. Star Wars: The Clone Wars would go ahead to film industry wealth and five effective seasons on Cartoon Network. A year ago, Netflix turned into the select home for a sixth and last season.
Yet the story doesn't end there. In October, Disney discharged an enlivened prequel titled Star Wars Rebels on its Disney XD station. Fan response has all the earmarks of being overwhelmingly positive, with 85% of viewers scoring the arrangement as "new" on Rotten Tomatoes. Toys focused around the arrangement's characters and experiences are now accessible from Hasbro, which simply implies additionally permitting income for the House of Mouse.
Conclusion
Disney has been growing in numbers consistently and with the impending launch of Star Wars, it seems like Disney has a lot of room to grow and which is why investors should consider adding it to their portfolio for the long-run.
