Disney Ditches Consolidated Earnings-Growth Metric in Leadership Shift

Walt Disney (DIS) has shifted its focus from consolidated earnings-growth numbers to segment operating income and streaming metrics. The change is a clear indication of the company's new leadership, which took over five months ago. In its recent call, management did not lead with the high single-digit adjusted EPS growth figure it used to emphasize, instead opting for more granular data on individual business segments.

The old anchor was 21% total segment operating income growth, which exceeded prior guidance. Streaming turned in a 13% SVOD operating margin in fiscal Q3 and passed an app-unification milestone that allowed Hulu subscribers to link profiles on Disney+. However, not all segments are moving at the same pace: Experiences grew 6%, Entertainment 3%, and Sports remained flat.

Revenue growth is accelerating, with a 4.6% increase over the trailing twelve months against a three-year average of 4%. The company's operating margin sits above its own three-year average of 13.4%. The exception to this trend is the Sports segment, which accounts for 18% of revenue but did not grow at all over the past year.