 Welcome to the channel. This is reliable Rudy in this video. We're going to make our part 2 for Walt Disney Company We're going to focus on their most recent earnings report and we're going to take that information and Following this video We will be plugging in assumptions for our stock analyzer tool where we'll go the macro trends and see where we're interested in Buying the company and we're going to wrap up the Disney series with a charting video Going over some details there, but before we get into this earnings report I'm not a licensed financial advisor everything this video contains only my opinion and it's for entertainment purposes only I'll also say I have no individual holding for Walt Disney Company unless it is in the VT vanguard total world index fund I'm not even really sure if it is, but I wouldn't be surprised if it was But nonetheless, I have nothing personal to gain in sharing the information that I'm going to be going over Also, this is a large earnings report They go into each individual segment. I'm not going to be breaking down the entire orange report I'm just going to be focused on our eight pillars and Determining if there's anything that we can see trends or regardless of what it is That's what I'm going to be focused on so I'm not going to dive directly into every segment So if you are interested in doing that, I will show you how I got to this page I simply typed Disney investor relations into Google. You'll see that I clicked it and I Went to Disney press releases Clicked on that the Walt Disney Company reports third quarter and nine month earnings for fiscal 2022 That is how I got there if you're interested in knowing that so going into this earnings report Revenue increase. I this is part of the stock analyzer tool So we are focused on the revenue growth. So For the quarter year over year grew 26% and for the nine month grew 28% now in my last video I state that they were Negatively affected and in particular their last three years. So even though it's 26% I'm not going to be using these for my projections because I don't know It's possible that they had easy comps from the year before I don't know that much about it, but in the end I'm going to continue being conservative in my analysis But understand that from 2006 to 2018 the company Did everything that they needed to do and showed me that they're capable of producing? so Another thing I want to point out free cash flow So quarter over quarter a decrease in 65% of cash flow and the nine month They are still negative on the year and free cash flow and I was four main things that I'm focused with with free cash flow That you can do with free cash flow one pay off debt Pay a dividend buy back shares or reinvest back into the business So those are the four main things that I'm looking for in terms of free cash flow So a little bit alarming that they had a decrease you over a year of 65% But we'll see if we can find anything that's related to that in the earnings But yes as the free cash flow side so now here is these segments We are going to skip through all of their individual segments Like I said if you're interested in looking through this by all means I showed you how to get there you can do that on your own Okay, other financial information right here Increases of expenses Keep that in mind other expenses Okay, so I can see right here that they have an individual investment in DraftKings and they did write off some of it for a non-cash loss So they still are holding this investment. So keep in mind that you might want to dive in to DraftKings and see where they're sitting with that as well. I don't know where DraftKings is currently sitting but also What it what do you what price do you like DraftKings that that would be going into Where do I like the value of DraftKings? Do I think that they're going to still get a return because you can see they've recorded a non-cash loss right here? So that could be hurting or maybe they're benefiting from it now I don't know but something to monitor you want to look at what their individual stakes are in Let's just get to the income statements unless there's anything else that it more stuff on the free cash flow We already talked about that. Okay. This is also a key point of this earnings report capital expenditures This is the company reinvesting back into their business. What what what money are they putting back into their business? And is there anything here that we want to look at now? I can see year over year This is the nine month. This is over 50% increase in capital expenditures Now you want to know where those increases in capital expenditures are coming from now? I can see right here. Here is a large increase in capital expenditures total Disney parks experiences and products Are you okay? You have to ask yourself are you okay with them upping their capital expenditures in this end in this Part of their business so understanding where they're where that increase in capital expenditures is going in are you okay with that? I don't know that's that is up for you to decide I'm not here to to get you to lean one way or the other but understanding where those capital expenditures is going is important But that is a large increase so this is partially why it's cutting into their free cash flow as well They're upping their capital expenditures. Are you okay with that in the short term? It could pay off long term I do not know but right here. You can see capital expenditures increase from 2.5 billion to 3.8 billion Parts are primarily due to higher spending at Disney parks. Okay. Are you okay with that? That's something that you have to ask yourself Yeah, just more information right here. Let's just get to the financial statements. I'm gonna continue Like I said, there's a lot of information on here a Lot of information to go over so here we are we're at the income statement here So what am I going to be focused on right here? So a part of my? Stock analyzer tool is revenue. We already looked over revenue now profit margins I want to be able to determine where their profit margins are for the quarter How did that match up from the year before year over year quarter over quarter increases in profit margins? What I'm looking for so I'm gonna go into here and calculate their profit margins So I can see here's their revenue now with this revenue increase you can see costs and expenses Increased a decent amount there as well. So how much of this is good revenue? It looks like there probably is going to be an increase in profit margins off of first look But here is their total net income for the quarter so I'm going to look at the profit margins from the quarter and 2021 and then I'm going to look at the profit margin for the quarter in 2022 and just to reiterate we will go to the income statement Real quick and you can see net income. Let's switch to this to a quarterly. So right here is q2 Or three whatever it is of 2021. I can see that they had net income of 918 million So going back to this earnings report here is that 918 million So this is the number that I'm going to be using to see what their profit margins were So I'm going to pull up a calculator. We're going to see what last year's was was we're going to take 918 divided by 17 0 2 2 Now you can see they had profit margins of the previous year's quarter of about 5.3 percent so Maybe this is a better quarter for them It would make sense with uh theme parks and in the summer more people go to theme parks So now i'm going to generate they had 5.3 percent the year before i'm going to take one 409 Divided by 21 504 21 504. I want to see increase. Okay 6.5 profit margins. I do like that increase and as I uh had stated in the previous video They had shown me from 2006 to 2018 that they can consistently grow their profit margins year in and year out Now the last three years were definitely skewing their five year numbers So I do like this increase in profit margins. That is a very good sign to me Now lastly before we wrap this video up. I'm going to look at these shares. So I can see A little bit of buyback shares. Let's actually go back to the quarterly. We're on the income statement already. So I can see They've consistently been holding around this 1.82 billion in shares outstanding. So uh reiterating this 15 percent share dilution Over the next five years. Do I think that's going to continue going into the future? Well off of this earnings report They're not diluting any shares right now. So that is a very good sign But I would like to see them buying back shares But maybe that that time just isn't yet But into the future are they going to be buying back shares or diluting shares? That is a question that you have to ask yourself. So understanding where these shares outstanding is very important Uh, let's just quickly skim through this and see a total assets Let's see a check out a current ratio. We can see what their current ratio was before to I don't think I did that so Total assets. I want to see total liabilities less than that total liabilities. Okay, so they got about a over a 2 0.0 current ratio. So like I said, I don't think that disney is going out of business anytime soon I'm not worried about disney going out of business And if they are increasing profit margins that is also very good So I think that is going to wrap up my walt Disney Uh earnings report, you know, if I didn't dive into it as much as you wanted I do apologize But a lot of information here And I'm not an individual holder in disney I I'm not too worried about that that aspect of it But in terms of stuff that I'm looking for I thought that this was probably a pretty solid earnings report for disney And if we look at the metrics, you know, the price has been going up pretty good off of this earnings report There could be some other stuff in there that is beneficial to look through But this is going to complete the video. I hope you guys enjoy the content and we will see you on Part three for disney for our stock analyzer tool where we're going to plug in numbers for the company And I will see you on the next video for that one