Disney posts earnings beat as streaming profit, guidance top estimates
Disney (DIS) on Thursday reported fiscal fourth quarter earnings per share and revenue that topped Wall Street estimates, as its direct-to-consumer business built on recent momentum and swung to a profit.
Strong guidance for the next two years also fueled investor optimism, sending shares up over 10% in early trading following the results.
The media and experiences giant reported Q4 adjusted earnings of $1.14 per share, above the $1.10 expected by analysts polled by Bloomberg. It was also higher than the $0.82 Disney reported in the prior-year period.
Revenue came in at $22.57 billion, outstripping consensus expectations for $22.47 billion as well as the $21.24 billion reported in the year-ago period.
Disney’s direct-to-consumer (DTC) streaming business — which includes Disney+, Hulu, and ESPN+ — posted operating income of $321 million for the three months ending Sept. 28. That compares to a loss of $387 million in the prior-year period.
Analysts polled by Bloomberg had expected DTC operating income to come in around $203 million after the company reached its first quarter of streaming profitability in its Q3 results.
Achieving consistent profits in streaming is critical for Disney and other media giants amid a growing shift by consumers to DTC services from traditional pay-TV packages.
In mid-October, the company hiked the price of its various subscription plans, highlighting a trend that has gained traction over the past year. With such moves, media companies are attempting to boost margins on direct-to-consumer (DTC) offerings in the face of rising declines in linear television.
Disney said Thursday that it expects DTC operating income of approximately $875 million in fiscal 2025.
On the earnings call, Disney CFO Hugh Johnston noted gains in streaming serve as a “natural hedge” against struggling linear networks, which saw revenue fall 6% while operating income for the segment plunged 38% compared to the prior-year period.
Management warned linear networks are expected to continue to decline as more consumers abandon their cable packages.
The entertainment giant’s results come as it searches for a successor to current CEO Bob Iger to help it navigate a changing industry. A recent report from the Wall Street Journal said the pool of candidates is expanding as the executive is set to leave Disney for a second time by the end of 2026.
Last month, Disney said it plans to announce its next CEO in early 2026, with current Disney board member and former Morgan Stanley (MS) CEO James Gorman leading the charge. He will serve as the company’s new chairman of the board, effective Jan. 2, 2025.
Nice Beats Q3 Estimates On Strong Sales, Raises Outlook
Nice Ltd NICE shares are trading lower on Thursday.
The company reported third-quarter adjusted earnings per share of $2.88 beating the street view of $2.68. Quarterly revenues of $689.963 million (up 15% year-over-year), outpacing the analyst consensus estimate of $683.481 million.
Cloud revenue grew 24%, totaling $500.1 million, while adjusted operating income rose 20% to $220.8 million.
The company also improved its adjusted operating margin to 32%, compared to 30.6% in the same period last year.
Nice CEO Barak Eilam credits the results to “cutting-edge AI innovation,” citing an acceleration in deal signings and bookings for our CXone AI offerings.
Nice offerings include Copilot, Autopilot and Autosummary.
Outlook: Nice reiterated its 2024 guidance for adjusted revenues of $2.715 billion to $2.735 billion, compared with analyst expectations of $2.73 billion.
The company raised its adjusted EPS forecast to a range of $10.95 to $11.15, up from the previous $10.60 to $10.80. The updated guidance compared with the consensus estimate of $10.73 EPS.
Price Action: Nice shares are trading lower by 4.06% to $191.20 premarket at last check Thursday.
Read Next:
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Jones Soda Reports Q3 Revenue Drop, Mary Jones THC Brand Sees 264% Growth
Jones Soda Co. JSDA announced its financial results Wednesday for the third quarter ended Sept. 30, 2024. disclosing revenue of $4.2 million, compared to $4.5 million in the same period of 2023. The Seattle-headquartered THC-infused soda maker noted that the third-quarter revenue includes approximately $800,000 in revenue from its Mary Jones business compared to approximately $220,000 in the third quarter of 2023.
The company attributes the decline in revenue to a reduced sales volumes as a result of a Canadian distributor’s transition and loss of a discount retail customer in the U.S. Additionally, the ramp up of HD9 distributors has taken longer than expected.
“Our third quarter did not meet our internal expectations, and we have taken immediate action to correct our trajectory,” stated Paul Norman, chairman of the noard and interim chief executive and financial officer of Jones. “The third quarter results were negatively impacted by a Canadian distributor transition, the loss of a discount retail customer in the U.S., and a slower than expected ramp up with our HD9 distribution network. In addition, we incurred more operating expenses than we had initially budgeted. We have taken corrective actions to improve and align our cost structure, adjust our Canadian distribution model and have added more HD9 distributors in the fourth quarter.”
Read Also: Blüm Holdings Q3 Revenue Grows 182% YoY, Subsidiary Unrivaled Brands Files For Bankruptcy
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.
Q3 Financial Highlights
- Gross margin was 21.2% compared to 32.9% in the prior year quarter. This decrease was primarily driven by a one-time trade spend adjustment associated with a distributor transition in Canada as well as an unfavorable product mix.
- Net loss was $2.6 million, or $(0.02) per share, compared to a net loss of $900,000 or $(0.01) per share. The increase in net loss was primarily attributable to a decline in gross profit combined with an increase in total operating expenses to support the company’s growth plans.
- Adjusted EBITDA was a loss of $2.2 million compared to a loss of $900,000.
- Total operating expenses were $3.5 million compared to $2.4 million in the year-ago period. The increase was primarily a result of increased spending on product innovation and the associated marketing initiatives to support the company’s product expansion. Additionally, the company did incur a higher amount of legal expenditures related to its Mary Jones business than it did one year ago.
- At Sept. 30, 2024, cash and cash equivalents totaled $2.7 million compared to $1.5 million at June 30, 2024, and $3.9 million at Dec. 31, 2023. The increase in cash and cash equivalents compared to the second quarter of 2024 was primarily a result of the company successfully raising $3.7 million in net proceeds through a private placement in August 2024.
Additionally, Jones Soda announced that on Nov. 12, 2024 the board of directors appointed Paul Norman as the company’s interim chief financial officer, replacing Ronald Dissinger, who had served as interim chief financial officer since the resignation of Joe Culp on Nov. 4, 2024.
Price Action
Jones Soda shares closed Wednesday’s market session 2.44% lower at 20 cents a share.
Read Next:
Photo: Benzinga edit of images by Matthew Brodeur on Unsplash and Jones Soda
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.
3 Monster Stocks to Hold for the Next 10 Years
Identifying good stocks to own for the foreseeable future is one thing. Finding stocks with enormous growth potential to buy and hold for a full decade is another. It isn’t enough to offer a superior product or service. It must also operate in an industry that’s sure to grow — a lot — for the long haul.
With that as the backdrop, here’s a rundown of three monster stocks to consider adding to your portfolio now and holding for several years. None of them are household names. As you’ll see, however, each offers plenty of game-changing promise.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
In its infancy, broadband internet connectivity required physical connections like a phone line or cable TV cord. Then the wireless leap was made, turning your mobile phone into a connected device using antennas attached to cellphone towers.
Now these connections can be made from outer space. AST SpaceMobile (NASDAQ: ASTS) is not only making it possible, but relatively easy as well as reasonably affordable. At first blush, it seems like a solution to a problem that doesn’t exist. There’s enough mobile infrastructure peppered across the United States for seemingly everyone to remain connected.
Look beyond the U.S., though. AST SpaceMobile reports that of the planet’s 7.9 billion people, 3.7 billion of them face a significant gap in access to broadband (if they have access at all), while another 5.3 billion cellular subscribers occasionally lose connectivity due to terrain or travel. And, as recent hurricanes Helene and Milton reminded us, land-based connections aren’t immune to being knocked out.
AST SpaceMobile is still a start-up, with all the usual hallmarks of a young company. Those are minimal revenue paired with sizable losses. Indeed, the company’s top line was just a little less than $1 million during the second quarter of this year, yet it spent nearly $64 million on operating expenses like R&D and equipment construction — a fairly typical quarter so far.
The trajectory of its business is the key here, however. A year ago, the company wasn’t generating any revenue at all, and it didn’t actually launch its first commercial satellites until September of this year (in partnership with AT&T). And, it was only a few days ago that these so-called Bluebirds deployed the solar panels that will power them.
Once they’re fully activated though, they’ll each be able to deliver the same voice, data, text, and video services you currently enjoy with your more traditional mobile connectivity. They’ll just be making it happen from orbit.
I'm 63, Have $1.6 Million, and Spend $4,500 Monthly. Is It Time to Retire?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below.
With a $1.6 million net worth and $4,500 in monthly expenses, retiring at 63 is a possibility, but quite a bit of that depends on your circumstances. The income your net worth will generate depends first on how much of it is in the form of liquid assets. Your personal risk tolerance is another key factor that will help determine how much your portfolio is likely to earn, as well as how much of the principal you are comfortable withdrawing to pay living expenses. Additional elements of importance include how much and what kind of other income you have, your tax situation and your life expectancy.
Do you have questions about retirement planning? Speak with a fiduciary financial advisor today.
Using the 4% withdrawal rule of thumb, you could withdraw $64,000 the first year, adjusting it upward for inflation annually thereafter. This rate is equivalent to $5,333 a monthly, which is technically above your monthly expenses.
Now, let’s look at the risks of going this route. To begin with, many advisors note that a 4% withdrawal rate is not always going to work in all situations. While it’s designed to let a conservatively invested portfolio last at least 30 years under a wide variety of market and economic scenarios, it may not consider all potential negative developments. For instance, what if an era of high inflation, low investment returns or unexpected expenses such as medical costs come into play? That could cause your monthly expenses to skyrocket or your portfolio to be unable to keep up.
Much also depends on how much of your net worth consists of investable, liquid assets that can generate active and accessible income. For instance, what if your $1.6 million net worth includes your paid-off personal residence valued at, say, $400,000. While you’re getting a great deal of value out of the home (this would have it holding a quarter of your net worth’s value), you can’t generate income with it unless you sell or rent it out.
Subtracting the home’s value in this scenario, you would still have $1.2 million, but is any other part of it illiquid? Let’s assume not and it’s all in a combination of cash, CDs, bonds, shares of stocks, mutual funds and retirement accounts. Applying the 4% rule in this situation, you could safely withdraw $48,000 annually or just $4,000 a month, leaving $500 a month in unfunded monthly expenses.
A fiduciary financial advisor can help you create a retirement income plan.
The good news is that if you’re similar to a typical retiree, you will have sources of income other than investments. These could include Social Security benefits, pension benefits, annuity payments or earnings from part-time work.
Ceramic Substrates Market Size is Projected to Reach USD 8.09 Billion by 2032, Growing at a CAGR of 6.42%: Straits Research
New York, United States, Nov. 14, 2024 (GLOBE NEWSWIRE) — The ceramic substrate market involves the production, distribution, and application of ceramic substrates, which serve as essential platforms for electronic components, circuits, and assemblies. These substrates are prized for their outstanding properties, including excellent thermal conductivity, high electrical insulation, and strong mechanical stability, making them vital for high-performance electronic applications.
Common ceramic materials used in substrates include alumina (Al2O3), known for its excellent electrical insulation and thermal conductivity; aluminum nitride (AlN), valued for its superior thermal conductivity in high-power electronics; silicon carbide (SiC), renowned for its hardness and thermal stability; and beryllium oxide (BeO), which offers exceptional thermal conductivity and electrical insulation.
Download Free Sample Report PDF @ https://straitsresearch.com/report/ceramic-substrates-market/request-sample
Market Dynamics
Corrosion-resistance and lightweight properties drive the global market
Ceramic substrates, such as alumina (Al₂O₃) and aluminum nitride (AlN), are highly valued for their outstanding corrosion resistance, with the ability to withstand moisture, chemicals, and other harsh conditions. This makes them ideal for industries facing extreme environments, like automotive electronics, aerospace components, and industrial equipment, where materials must endure corrosive gases, liquids, or high humidity.
Additionally, ceramic substrates offer the advantage of being lightweight, which is crucial for enhancing fuel efficiency and performance in automotive and aerospace applications by reducing component weight.
- For instance, in electric vehicles (EVs), lightweight ceramic substrates improve energy efficiency, ultimately extending driving range. Similarly, in consumer electronics, the reduced weight of ceramic components contributes to device portability and user convenience.
As industries increasingly demand durable, lightweight materials with excellent performance, ceramic substrates are poised to play a growing role across high-tech sectors, supporting advancements in efficiency and reliability.
Rising demand for nanotechnology and high-end computing systems creates tremendous opportunities
The rising demand for nanotechnology and high-end computing systems is generating significant opportunities for the ceramic substrate market. Due to their superior thermal management, electrical insulation, and high-frequency capabilities, ceramic substrates are essential in these advanced applications, where performance and precision are paramount.
In nanotechnology, ceramic substrates support the fabrication of nanoscale components, providing efficient heat dissipation crucial for the stability and functionality of these tiny devices. For example, in high-end computing systems like data centers and advanced processors, ceramic substrates help manage heat and offer electrical insulation, which is essential for system stability and performance.
A relevant example is seen in high-performance microprocessors from companies like Intel and AMD, which rely on ceramic substrates for effective heat management, ensuring reliable operation under intense workloads. As nanotechnology and computing power continue to evolve, the demand for ceramic substrates suited to these stringent requirements is expected to grow, driving market expansion and innovation.
Regional Analysis
The Asia-Pacific (APAC) region dominates the global ceramic substrate market due to its rapid industrial growth and advancements in technology. Key contributors include China, Japan, South Korea, and India, which together create the largest consumer and manufacturing base for the electronics, automotive, and telecommunications sectors.
China is a leader in both the production and consumption of ceramic substrates, with a strong manufacturing infrastructure and substantial investments in high-tech industries like electric vehicle (EV) infrastructure fueling demand. Japan and South Korea are also prominent, with tech giants such as Sony and Samsung integrating ceramic substrates into high-performance electronics and advanced telecommunications equipment.
India’s growth adds to APAC’s strength. Through initiatives like “Make in India,” the country is focused on expanding electronics manufacturing and attracting foreign investment in technology-driven sectors, increasing demand for ceramic substrates in automotive and consumer electronics. This combined industrial and technological growth solidifies APAC’s leadership in the ceramic substrate market.
Ask for Customization @ https://straitsresearch.com/report/ceramic-substrates-market/request-sample
Key Highlights
- The global Ceramic Substrates market size was valued at USD 7.6 billion in 2023 and is projected to grow from USD 8.09 billion in 2024 to reach USD 13.50 billion by 2032, expanding at a CAGR of 6.42% during the forecast period (2024–2032).
- By product type, the alumina is the dominant product type segment.
- By form, the ceramic plate segment stands out as the most dominant.
- By end-user, the consumer electronics segment is a key driver in the global ceramic substrate market.
- Asia-Pacific is the highest shareholder in the global market.
Competitive Players
- Kyocera Corporation
- Murata Manufacturing Co., Ltd.
- CeramTec Inc.
- CoorTek Inc.
- Maruwa Co., Ltd.
- LEATEC Fine Ceramics Co., Ltd.
- CeramTec GmbH
- KOA Corporation
- Yokowo Co., Ltd.
- Nikko Company
- SST Sensing
- Rogers Corporation
- AdTech Ceramics
Recent Developments
- In June 2024, PanelSemi partnered with NGK Insulators to create high-performance hybrid packaging, and the two companies are developing ultra-thin flexible LED displays and substrates for semiconductor modules. PanelSemi is creating a hybrid circuit board by combining functional circuits and fine wiring on polyimide film with a ceramic substrate.
Segmentation
- By Product Type
-
- Alumina
- Aluminium Nitride
- Silicon Nitride
- Beryllium Oxide
- By Form
-
- Plates
- Sheets
- Films
- By End-User
-
- Consumer Electronics
- Aerospace and Defence
- Automotive
- Semiconductor
- Telecommunication
- Other
- By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East And Africa
Get Detailed Market Segmentation @ https://straitsresearch.com/report/ceramic-substrates-market/segmentation
About Straits Research Pvt. Ltd.
Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.
Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our client’s issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.
Phone: +1 646 905 0080 (U.S.)
+44 203 695 0070 (U.K.)
Email: sales@straitsresearch.com
Follow Us: LinkedIn | Facebook | Instagram | Twitter
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Will Trump's Second Term Unlock Housing? 'Lower Rates, More Development' On The Table, Experts Say
Real estate experts anticipate changes to housing policy following Donald Trump’s election victory. His promises of lower interest rates and reduced development regulations have taken center stage in his approach to the market.
The president-elect’s platform focuses heavily on removing barriers to new construction, including eliminating regulations that currently add over $90,000 to new home prices. His administration also plans to open federal lands for housing development.
Don’t Miss:
“Many in the real estate business are elated with a Trump victory and if the administration can live up to its campaign promises, rightfully so,” Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
“For months, he has been advocating for lower interest rates, which have become one of the most significant barriers to home ownership in the post-pandemic years,” he said.
Trending: During market downturns, investors are learning that unlike equities, these high-yield real estate notes that pay 7.5% – 9% are protected by resilient assets, buffering against losses.
According to Realtor.com Chief Economist Danielle Hale, potential Republican control of Congress could accelerate these policy changes. However, she noted that Trump’s proposals present both opportunities and challenges for the housing market.
While supply-side policies might boost housing inventory, some measures could have unintended consequences.
Proposed immigration restrictions could affect the construction labor force, with Census Bureau data showing that up to one-third of residential construction relies on foreign-born workers.
Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
Industry leaders see potential benefits in Trump’s real estate background. “The fact that Trump is a real estate developer himself also lends to the feeling that he ‘understands’ the market and what drives demand, quality and profits,” said Jeff Holzmann, Chief Operating Officer of RREAF Holdings, to Newsweek.
Ben Allen, cofounder of construction permitting platform GreenLite, predicted increased development activity if interest rates decline.
See Also: Unlock the hidden potential of commercial real estate — This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!
“A lower cost of capital with better economics for developers should help accelerate development while bringing more housing inventory online faster,” Allen told Newsweek. “The entire market benefits – developers, buyers and sellers alike.”
The housing sector faces a significant supply shortage, with estimates ranging from 2.5 to 7.2 million needed homes over the past decade.
It remains to be seen whether Trump can address the fundamental challenges while managing market dynamics. However, experts do expect relief during the former president’s second term.
Read Next:
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
'Trees don’t grow to the sky': Nelson Peltz says the stock market's Trump 'euphoria' won't last
The stock market has been on a record-setting hot streak since Donald Trump won the White House last week. But billionaire activist investor Nelson Peltz doesn’t think it will last.
“No, trees don’t grow to the sky. Definitely not uninterrupted,” the Trian Partners founder said in an interview at CNBC’s Delivering Alpha conference. “There will be something that might upset it. I think you’ve got euphoria from the election.”
Major stock indexes, including the Dow Jones Industrial Average, the S&P 500, and the Nasdaq, all hit record highs in the days following Trump’s election win. These gains slowed Wednesday, with the Dow ending the day up just 0.11%, or about 47 points, the S&P 500 closing up 0.2%, and the tech-heavy Nasdaq falling roughly 0.26%.
Beyond the election-driven excitement, Peltz pointed to the high concentration of companies that currently drive the market.
“You’ve got the S&P 500, and then you’ve got the S&P 20-25,” he said. “You’ve got two different markets. It’s the wrong name. You’ve got these 20 companies that are swinging the cat around the room. And then you’ve got these other companies.”
That echoed observations from researchers at Goldman Sachs (GS), who have warned that the era of double-digit gains in the stock market may be coming to an end. The strategists estimate that the S&P 500 will deliver an annualized return of 3% over the next decade — well below the 13% returns of the last 10 years and the long-term average of 11%.
While they attributed much of that downward revision to a higher starting point going into the next decade, another major factor fueling uncertainty is an “extremely high level of market concentration,” particularly when it comes to the 10 largest mega-cap tech stocks, the strategists said.
These top 10 companies — which include Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Google parent Alphabet (GOOGL), and Meta (META) — account for 36% of the overall index and are driving much of the returns. So far this year, these leading firms have returned almost43%, compared with 36% for the index as a whole.
Goldman said its forecast would be roughly 4 percentage points higher (7% instead of 3%) if the market were not so concentrated, with a baseline range of 3% to 11% growth instead of a possible -1% to 7% over the next decade.