On November 8, 2022, a series of dark pool trades occurred in Disney $DIS stock that look like sell orders.
$61 million dollars in dark pool trades occurred at $99.90, while another $16 million dark pool trade occurred at $101.04. We think these dark pool trades were selling because of how $DIS stock fell like a rock when the trades hit the tape.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
The dark pool selling and subsequent plunge in Disney $DIS stock came after the company reported both EPS and revenue misses.
The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2022
On November 8, 2022, the Walt Disney Company (NYSE: DIS) reported earnings for its fourth quarter and fiscal year ended October 1, 2022. Disney reported Q4 EPS ex-items of 30c versus the consensus estimate of 57c. The company also missed on revenue, reporting Q4 revenue of $20.15B versus the consensus estimate of $21.36B.
“2022 was a strong year for Disney, with some of our best storytelling yet, record results at our Parks, Experiences and Products segment, and outstanding subscriber growth at our direct-to-consumer services, which added nearly 57 million subscriptions this year for a total of more than 235 million. Our fourth quarter saw strong subscription growth with the addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers. The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate. By realigning our costs and realizing the benefits of price increases and our Disney+ ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future. And as we embark on Disney’s second century in 2023, I am filled with optimism that this iconic company’s best days still lie ahead,” said CEO Bob Chapek.
Disney CFO says advertising landscape remains fluid
On November 8, 2022, the CFO said in Disney’s Q4 earnings conference call, “ESPN advertising revenue in Q4 was down 23% year-over-year. However, adjusting for the timing impact of the NBA Finals, it was down roughly 2%. Note that in Q1 of fiscal 2023, we also expect to see a timing impact versus the prior year from 2 college football playoff games that are shifting into the second fiscal quarter this year versus the first quarter last year. Quarter-to-date, ESPN domestic cash advertising sales are pacing down, reflecting in part the absence of these 2 CFP games. The advertising landscape remains fluid. The sports marketplace, in particular, is delivering strong audiences across our platforms with marketers looking to take advantage of live events and several categories, including political, pharma, insurance and restaurants, have continued to show relatively stable demand while others remain cautious in anticipation of potential economic softness.”
The bigger Disney gets, the more they’re losing: New York Times’ James Stewart on earnings
Disney $DIS Stock Technical Analysis
Disney $DIS stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. Disney stock is trading in a downtrend channel chart pattern. The stock is approaching oversold territory so a bounce of trend reversal is possible. The MACD has just given a sell signal and the money flow is negative.