Disney Experiences Segment Generates $3 Billion in Operating Profit

Walt Disney's experiences segment generated $3 billion in operating profit during its most recent fiscal quarter. The company's theme parks and cruise lines saw strong results, offsetting mixed performance elsewhere. Despite this success, investors are still valuing the stock as a value stock, with a forward earnings multiple around 15-16 times.

The experiences segment, which accounts for 54% of Disney's total operating income, grew revenue by 10% year over year and saw a 20% jump in operating income. Theme park admissions rose 9%, driving spending on merchandise, food, and beverages. The company is also seeing growth in its cruise business with the launch of two new ships.

The discount reflects uneven performance across Disney's entertainment empire, including declines in cable subscribership and high content costs for streaming services. Investors may be waiting to see more proof of new CEO Josh D'Amaro's strategy before deciding on a higher earnings multiple.