Hasbro (HAS) has successfully secured a multi-year continuation of its collaboration with Disney (DIS, Financial) Consumer Products, ensuring the ongoing creation of toys and games based on the iconic Star Wars and Marvel brands. This extension solidifies Hasbro’s position as a key player in merchandising Disney's premier franchises, allowing the company to maintain its production of toys, collectibles, and board games rooted in both classic and new Marvel and Star Wars content.
The agreement enables Hasbro to continue developing popular product lines such as Star Wars' The Black Series and The Vintage Collection, which bring beloved characters to life as action figures. Additionally, Hasbro will keep engaging new audiences with their popular Lightsabers toys and other themed products featuring characters from the Star Wars universe, including Darth Vader and The Mandalorian.
On the Marvel front, Hasbro's acclaimed Marvel Legends action figures will remain a staple, featuring fan-favorite characters like Spider-Man and Black Panther. The partnership will also extend to products inspired by Disney Jr.'s series such as Marvel’s Spidey and his Amazing Friends and the upcoming Marvel’s Iron Man and his Awesome Friends, catering to audiences ranging from preschoolers to adult collectors.
Beyond toys and games, Hasbro maintains a separate licensing agreement with Disney that integrates iconic Marvel characters into its Magic: The Gathering trading card game. This aspect of their relationship highlights the broad and evolving nature of their collaboration, one that continues to grow and diversify across various entertainment mediums.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for The Walt Disney Co (DIS, Financial) is $123.90 with a high estimate of $147.00 and a low estimate of $79.00. The average target implies an upside of 41.94% from the current price of $87.29. More detailed estimate data can be found on the The Walt Disney Co (DIS) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, The Walt Disney Co's (DIS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Walt Disney Co (DIS, Financial) in one year is $115.46, suggesting a upside of 32.27% from the current price of $87.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Walt Disney Co (DIS) Summary page.
DIS Key Business Developments
Release Date: February 05, 2025
- Film Studio Performance: Top three movies of 2024 at the global box office.
- Streaming Profitability: Growth in streaming profitability.
- ESPN Ratings: Historic ratings achieved.
- Experiences Business: Strong and enduring appeal noted.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Walt Disney Co (DIS, Financial) achieved strong performance in its film studios, with the top three movies of 2024 at the global box office.
- Growth in streaming profitability was observed, with significant advancements in technology and personalization efforts.
- ESPN experienced historic ratings, contributing positively to the company's financial results.
- The Experiences business showed strong and enduring appeal, with positive bookings and successful launches like the Disney Treasure.
- The company demonstrated effective cost management and maintained confidence in its financial guidance despite macroeconomic uncertainties.
Negative Points
- The company faces challenges with cord-cutting trends and the need to adapt to skinnier bundles in the market.
- There is ongoing pressure to enhance the Disney+ platform to reduce churn and increase subscriber growth.
- The NBA contract presents a challenge with increased rights costs, requiring strategic management to maintain profitability.
- The company is navigating a rapidly evolving macro environment, which could impact financial performance and guidance.
- Technological advancements and platform enhancements are still in progress, requiring continued investment and development.
