Walt Disney saw 5% year-over-year revenue growth and a 9% decline in operating income, driven by experiences, streaming, and sports. Entertainment profit outside streaming dropped 55%, with negative free cash flow due to timing. Experiences sales rose 6%, while streaming sales grew 11% and sports sales increased by 1%.

Experiences accounted for 72% of operating profit, with a 33% operating margin. Streaming’s operating margin expanded to 8%, and sports sales grew 1% with a 4% operating margin. Disney maintains a forecast and USD 120 per share fair value estimate, citing solid long-term growth potential but near-term downside risk due to international tourism headwinds.

Disney anticipates modest fiscal second-quarter experiences in operating profit due to economic risks. Expected growth in experiences sales and operating profit in the longer term, with the launch of another cruise ship in March and expansion at all parks. However, Disney did not disclose streaming subscriber numbers, making it challenging to dissect the decline in entertainment operating profit outside streaming.

Read more at Morningstar: Disney Earnings: No Big Surprises in Solid Results; Areas of Ostensible Weakness Aren’t of Concern