Three Catalysts Disney Has Going Into 2022
Disney (NYSE: DIS) stock is down 14% in 2021. As the company battles pandemic-fueled disruptions, investors may ponder if Disney's business will ever be the same. Disney has some exciting catalysts going into 2022, and now may be a good time to buy the dip.
The COVID-19 pandemic took the world by storm in March 2020. The year 2021 was the first full fiscal year that Disney, which is heavily reliant on its theme parks, was impacted by the pandemic. Despite these headwinds, Disney reported revenue of $5.5 billion in its Parks, Experiences and Products segment for the fiscal quarter ended Oct. 2 which represented 99% year-over-year revenue growth. On top of that, the company improved its operating income, generating $641 million in this segment during the quarter compared to a loss of nearly $1 billion during the same period in the prior year.
These results should not be taken at face value. For the fiscal year ended Oct. 2, Disney reported total revenue of $16.6 billion and operating income of $471 million for Parks, Experiences and Products. This represents a 3% year-over-year decline in revenue, and only a 4% increase in operating income. Considering that quarterly operating income for Parks, Experiences and Products was $641 million, yet annual total operating income was lower at $471 million, it is clear that this segment was operating at a loss earlier in 2021.
Source Fool.com
