As controversial and emotionally charged as Iger’s return was for the market, it is a move paying off for investors at Walt Disney (NYSE: DIS). His return keeps the company on track to sustain long-term growth, healthy cash flows, and increasing capital returns while delivering value to its consumers. The results from Q3 are a testament to his efforts, including optimizing the streaming business. Streaming and entertainment were the driving forces of growth in FQ4, but strengths were seen across the board, including widening the total system margin.
The critical detail is that the company outperformed, accelerated its growth, and provided robust guidance forecasting double-digit earnings growth for the next three years underpinned by streaming and sports. That puts the stock at quite a value, trading at only 15.5X the low end of projections, with dividends, share buybacks, and distribution growth also in the picture.
