Walt Disney Company (DIS – Free Report) came out with its Q4 results after close of trading hours on Nov 8 and delighted investors by beating both earnings and revenue estimates (see: all the Consumer Discretionary ETFs here).
Earnings in Focus
Disney reported earnings of $1.48 per share, beating the Zacks Consensus Estimate by 17 cents and increasing 38.3% from the year-ago quarter. Revenues grew nearly 12% year over year to $14.1 billion and surpassed the Zacks Consensus Estimate of $13.81 billion.
Quarterly revenues shot up 50% year over year on brilliant performances by “Black Panther,” “Star Wars: The Last Jedi,” “Avengers: Infinity War” and “Incredibles 2.” Disney announced in its press release that its streaming service, set to launch next year, will be known by the name Disney+ (read: 5 Sector ETFs to Sizzle on Upbeat October Jobs Data).
Following the earnings announcement, shares of Disney rose about 2% in aftermarket hours. The stock currently has a Zacks Rank #3 (Hold) and belongs to a top-ranked Zacks Industry (top 25%) (read: Can Low Volatility ETFs Protect Your Portfolio?).
ETFs in Focus
The rally in the company’s stocks will spread into the ETF world, especially funds that have the largest allocation to this media and entertainment conglomerate.
Itis a newly launched ETF (On Sep 24) tracking the Morningstar Societal Development Index measuring the performance of large & mid-capitalization companies globally that display commitment to the Sustainable Development Goals of United Nations. It comprises 138 holdings; Walt Disney occupying the ninth spot with 6.43% weight. Sector wise, technology (22%), healthcare (18%), financials (16%) and consumer staples (15%) have double-digit allocation each. It has amassed $1.9 million since its inception and has an expense ratio of 0.76%.
The fund tracks the Dynamic Leisure and Entertainment Intellidex Index and comprises 30 holdings. Walt Disney (5.7%) occupies third spot in the fund pool. Sector wise, consumer discretionary (53%), communications (20%) and industrials (16%) have double-digit allocation each. The fund’s AUM is $124.2 million and expense ratio is 0.63%.
The fund tracks the Dynamic Media Intellidex Index comprising 30 U.S. media companies, of which Walt Disney represents 5.4% — the third highest position. The fund has AUM of $72.6 million and an expense ratio of 0.63%.
The fund tracks the S&P Global Telecommunications Sector Index and comprises 66 holdings. Walt Disney (5.2%) sits at the seventh spot in fund pool. The fund’s AUM is $259.2 million and an expense ratio is 0.47%.
The underlying index is Share BuyBack Achievers Index, comprising U.S. securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. Sector wise, financials (28.1%), consumer discretionary (18.9%), consumer staples (13.4%), healthcare (11.9%) and communications (11%) have double-digit allocation each. The fund’s AUM is $1.3 billion and has an expense ratio of 0.63%.
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