Is The Walt Disney Company Really ‘Firing On All Cylinders’?

Disney at the MoffettNathanson event

On May 13, The Walt Disney Company (DIS) participated in the MoffettNathanson Media & Communications Summit. At the onset of the event, Michael Nathanson—an analyst at MoffettNathanson—commented on company’s performance. He said, “So, in what has been a really difficult environment for media, and I showed that earlier in my presentation, Disney is firing on all cylinders.”

Is The Walt Disney Company Really ‘Firing On All Cylinders’?

Disney’s performance in 2Q15

Disney did perform well in 2Q15. The media conglomerate’s revenue increased by ~7% year-over-year to ~$12.5 billion. The company beat Wall Street’s consensus revenue estimate by ~2% during the quarter.

The company’s earnings grew by ~10% year-over-year to reach ~$2.1 billion. Disney’s adjusted EPS (earnings per share) increased by ~11%, year-over-year to ~$1.23 in 2Q15. The company beat Wall Street consensus EPS estimate by a significant ~12% during the quarter.

About Disney

Disney is the largest media company in the United States, with a market capitalization of ~$187.59 billion as of May 19, 2015. Comcast (CMCSA) is the second-largest, with a market capitalization of ~$121.49 billion on the same date. The other large media players are Time Warner (TWX) and Twenty-First Century FOX (FOXA).

If you want to take on diversified exposure to Disney, you may invest in the Consumer Discretionary Select Sector SPDR Fund (XLY). It held ~7.4% in the media conglomerate on April 30, 2015.

You may take on more diversified exposure to the company by investing in the SPDR S&P 500 ETF (SPY). It held ~0.9% in the company on the same date.