Tomahawk, WI 8/08/2013 (Basicsmedia) – The Walt Disney Company (NYSE:DIS) was founded in 1923 and is currently based at Burbank, California. This is a company which operates purposely to offer entertainment all over the world. It has employed more than 160,000 people full time. DIS is an icon in terms of media and entertainment industry and enjoys loyalty from people all over the world for its products and services. This article seeks to get answers regarding the kind of future which this company will have going forward.
How Consistent is DIS in its Financial Health?
When you compare DIS with other organizations of a similar size, reputation and popularity, it is safe to say that the company has not excited many investors as it was supposed to do. It has been quite inconsistent in the manner in which it has reported its cash flows, return on investments for investors and profit margins. The aspect or nature of this business is such that some of these inconsistencies are to be expected, and this is the reason why most people haven’t been too taken aback by the trend, which has been in existence for quite a while.
DIS has always and will continue to be quite expensive to run and trade with. However, if you a are a patient investor, you can comfortably look forward to the creation of numerous opportunities to do business and make some money in the process. This is one stock which I would advise investors to be on the lookout for, though still maintaining interests elsewhere rather than putting everything in one basket, as some are wont to do. If you do you work very well, and follow the advice of your investment advisor, this stock can earn you a tidy profit.
When DIS reported its financial results earlier in 2013, it emerged that it had enjoyed impressive levels in terms of revenue. However, these were not transferred over to the profits thus investors probably failed to get their money’s worth, as they would have expected. Both the operating and net income had decreased by between 2-3%. Revenues which the company gets from its theme packs seem to be on the upward trend if the latest figures are anything to go by. Consumer earnings reported an increase which was in the region of $11 billion, another impressive amount.
What Must DIS Do to Survive?
If DIS can leverage its parks and business into income earners, this would have a major bearing on its overall revenue and profit margins. This type of business is not considered lucrative by DIS standards, but somehow, the company has to find a way of turning them into serious money earners. The company continues to report double digit margins from this segment of its business and if this can be maintained into the foreseeable future and beyond, DIS investors will have every reason to be happy that they invested in The Walt Disney Company, in the first place.
My take on this is that The Walt Disney Company has a great future. As a market leader kin media and entertainment circles, the company will lonely grow from this point onwards. It has great rewards, in my opinion, to long term as opposed to short term investors.