Disney and Qualcomm Report Strong Q1 Earnings, Beating Expectations
On Wednesday, Disney DIS and Qualcomm QCOM both delivered impressive earnings, exceeding expectations in both earnings and revenue for their fiscal first quarter.
As major players in their industries, these companies are worth watching closely in the upcoming weeks.
Disney’s Impressive Q1 Performance
Disney’s strategic cost-cutting measures have paid off, resulting in a net income of $3.7 billion and adjusted earnings of $1.76 per share. This represents a remarkable 44% increase from the EPS of $1.22 in the same quarter last year. Disney has surpassed earnings estimates for nine consecutive quarters, beating Q1 estimates of $1.44 by an impressive 22%.
With three major box office hits in 2024, Disney’s sales rose 5% year-over-year to $24.69 billion, slightly above analysts’ expectations of $24.65 billion.
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Qualcomm’s Strong Q1 Results
Qualcomm, a leader in the chip industry, reported a net income of $3.18 billion, marking a 24% increase in adjusted earnings to $3.41 per share compared to $2.75 in the last quarter. The company has beaten EPS estimates for seven consecutive quarters, outperforming Q1 estimates of $2.93 by 16%.
Qualcomm’s chipset business achieved a record $10 billion in sales, showcasing significant gains in the handset and automotive markets. Overall, Q1 sales reached $11.66 billion, up 17% from $9.93 billion a year earlier, easily surpassing estimates of $10.91 billion.
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Future Earnings Projections for Disney and Qualcomm
Disney maintains its full-year earnings guidance, anticipating a high-single-digit EPS growth for fiscal 2025. Analysts project the Zacks Consensus to be $5.43 per share, indicating a 9% growth. Additionally, EPS is expected to climb another 13% in FY26 to reach $6.16. Disney also estimates its cash from operations will be around $15 billion this year.
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For Q2, Qualcomm anticipates an EPS in the range of $2.70-$2.90, exceeding the current Zacks Consensus of $2.68, which forecasts 10% growth. Qualcomm also expects Q2 revenues of $10.2 billion-$11 billion, compared to Zacks’ estimate of $10.35 billion, projecting 10% growth.
Zacks estimates predict Qualcomm’s earnings to grow 10% this year and another 10% in FY26, reaching $12.32 per share.
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Conclusion
Both Disney and Qualcomm are positioned for potential growth, with Zacks assigning them a rank of #2 (Buy). Notably, earnings estimates for FY25 and FY26 have increased in the past month. The trend of positive revisions may continue, supported by strong Q1 results and optimistic guidance.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
