Disney Beats Expectations in Q4 and Next Year Could Be Even Better

Walt Disney Co (NYSE:DIS) released its Q4 earnings on Thursday as the company pumped out yet another strong quarter. Sales of $14.3 billion came in well above the $13.7 billion that was expected by analysts. Meanwhile, earnings per share of $1.48 were also well above estimates of $1.34. Investors were bullish on the results as the stock was up a modest 2% in after-hours trading.

A big driver behind the company’s strong quarter was studio revenues, which were up 50% year over year as Disney benefited from some big hits at the box office. However, as good as its box office performances have been, Disney’s potential goes far beyond that.

It could be a great time to own this stock as the company is coming off an acquisition of Fox, which will only add to its content library, and that’s going to be of key importance now that Disney plans to launch a streaming service sometime next year.

The new service will add a huge avenue for potential growth and will put the company up against Netflix, Inc. (NASDAQ:NFLX), which has dominated online streaming for a while now, but that’s all going to change as Disney and other companies look to offer their own content directly to consumers. Content has long been Disney’s strong point, and I wouldn’t bet against it.

Year to date, Disney’s stock has been able to achieve decent returns of 9% for investors, which is in addition to its dividend which pays a little over 1.4%. Overall, this is a great investment that you can hold for many years as Disney offers investors good value and a lot of growth.