BREAKING NEWS Disney's Earnings Call And Secrets Revealed

Added: 2026-05-07

[00:00:01]Okay, we got breaking news. Disney just had their earnings call and there are some things that were not surprising and some things that I found to be incredibly surprising. Maybe it's just cuz I'm super naive. I'm not exactly sure, but let me break it down for you.

[00:00:14]Hello everybody. My name is Chris. You are watching Provos Park Pass. You are amazing. And I want to say welcome.

[00:00:20]Let's get started. Oh, before we get started, hit the like and subscribe. You know the drill. Just subscribe. Got lots of great videos coming up. All right.

[00:00:27]Disney just had their earnings call. And for those of you who don't know me personally, maybe don't know this.

[00:00:33]Before I started became this goofy YouTuber and do all this, I actually worked in the business world for about 20 some odd years. Very, very proud of my career and got quite high up in the echelons of uh business etiquette and all that business stuff. The reason I bring that up is I'm going to break down what an earnings call is, what's really going on, and we're going to read between the lines looking at it as a business analytical mindset. All right.

[00:00:56]Now, what is a quarterly earnings call?

[00:00:58]What it is is every when a company is publicly traded on the stock market, uh they have these quarterly earnings calls where the CEO gets on and investors can ask questions and find out the health of the company. That way, investors can decide, do I want to put more money in the company? Do I want to withdraw money? That's the whole purpose of earnings call. Now, Disney just had their earnings call. It's the very first time that Josh Dear has been completely charged for this earnings call and Disney beat earnings. That's really, really positive for Josh. Now, but before we get to that, let me explain to you what does that mean when Disney beats earnings. There's what's called a consensus estimate. A consensus estimate is what all the different investors and Wall Street people who are on Wall Street, they use their own analytics and they come up with what they think they think where they think that Disney stock price should be. And then they take all of those people, all those different investors and all those analytics and they combine it. They look at the consensus idea. They say Wall Street feels that your stock should be at $100 at the end of this quarter.

[00:01:59]Then if Disney stock is at $100 and one set, oh, they beat earnings. They beat earnings. They were higher than the consensus estimate. That's what that means. It's generally a really positive thing for a company. By having that, it boosts confidence. So when you beat earnings, you're boosting confidence and get more investors. And that's a really positive thing for Disney. And Disney did beat earnings. Now, I want to talk about this real quickly about what this B earnings is, what they said on the call because I find this stuff very fascinating. Disney's their income, their operating income for the Disney experiences, which includes theme parks and Disney cruises, jumped up 5%. That means they made a 5% increase in their income. And what they're doing is they're looking at this space of time and they're comparing it to last year.

[00:02:44]They're looking at a year ago and saying, "Okay, for this exact same space of time a year ago, you've actually increased revenue by 5%." Which is a real positive thing. Now, this is what we have to see here. It would make me a little nervous, though, if I was an investor because if I heard this, here we go.

[00:03:00]Disney's theme parks in Florida and California recorded a 1% drop in attendance. Their attendance went down by 1%. But revenue rose by 5%. Now, some of you might be saying, "Wait a minute, how is that possible? How can attendance go down by 5% but revenue could go up by 5%. Well, that's because of pi price increases. That's because uh the the people the less people are attending are spending more money. They're spending it on more food, more merchandise. The ticket prices are higher, the food prices are higher, the souvenir price are higher, more people are going on cruise ships. And that's why even though the tenants has gone down, revenue has gone higher, less people spending more money. Now, does that make me nervous? a little bit if I was an investor because eventually you can only have so many people spend so much money and eventually you're going to plateau and start to go down.

[00:03:48]Disney probably what they want to do is attract more people and one of the reasons they said attendance drop down is because international travel has really dropped off. A lot of people from foreign countries are not coming to America anymore to go to the Disney parks and also uh people in the like the foreign Disney parks uh Paris, Japan, Hong Kong, they're not as attending their tendencies as high as it normally has been in the past, but revenue is up.

[00:04:12]Now I need to talk to you about this next part that happened on the call. And this for me was the most surprising part. It was shocking to me. And I don't know why it was shocked. I shouldn't have been shocked by this. I think I'm just naive.

[00:04:25]I think that Disney is like a personal company and it just kind of shocked me.

[00:04:30]Before I get into what said what was said in the earnings call, we got to go back. Let's rewind back in history to Tuesday, April 14th. Tuesday, April 14th, there was uh layoffs of thousand employees lost their jobs at Disney and the majority of those jobs were in the Marvel uh the visual development they called Vizdev team. It was just decimated. they were they were let go and it was very shocking to a lot of people. Thousand different people lost their jobs. Now whenever a company lays off employees generally it means that revenue is going to be higher because now you have less money going out to employees. You have more money to have to spend on other things. So that can also be a way to raise revenue within a company. Now after this layoffs in April 14th a lot of people are really concerned. They're like why are they laying off the visual development department of Marvel? Does that mean that Disney is going to be going to just using AI and having all AI do everything and now and they're not going to be having a human touch anymore? And this was a kind of a concern because uh when the layoffs that were happening uh people were asking about like AI technological advancements and they're Disney kind of hemmed and hot around like yeah we're going to use it but we don't you know don't worry we're going to be fine.

[00:05:41]Then on that was on Tuesday April 14th.

[00:05:45]On April on on April 24th, Josh Dearo sent out this email and I'm going to read it verbatim because I think it's important I read this so you hear what Josh's voice was. Josh sent out a memo to all of their employees on uh the 24th of April. And this is what it says. It says, "Hi everyone. Let me first say how grateful I am to step in this role and do it alongside the talented, passionate people who make this company what it is.

[00:06:09]Getting to work alongside you is a real privilege." I love that line. It's a fantastic line. Josh is very articulate and is great.

[00:06:16]Next paragraph. Disney has always been powered by creativity, innovation, and storytelling. But what makes these ideas matter is you.

[00:06:26]My goal is to support you, championing your ideas, and keep building the companies that's moving forward together. I think that's another fantastic paragraph that Josh has wrote.

[00:06:36]It's really building the camaraderie, letting you know how he's proud to work with people. You and I, we're going to do this together. We're going to build this company together. Now, this next paragraph maybe is a little weird. Okay, we're part of an extraordinary legacy and the next chapter is being written right now by embracing new ideas. So, he's saying, "Hey, the next chapter of the Disney company is being written right now by embracing new ideas." What are these new ideas? I wonder what they are. elevating new voices and working more closely across teams, we can create experiences that feel even more unified, more personal, and more meaningful than ever. So, he's like saying, "Hey, right now as a company, we're going to come up these great ideas and we're going to be doing this together and we're going to unify people and we're going to um and people it's it's kind of fluff, right?"

[00:07:28]But I don't think it is. Now, what does this really mean? Because now Josh, they had a layoff. So then Josh sent this memo say, "Hey guys, we're in this together. I love working with you. We're gonna we're being invn. We're coming up with some new ideas. We're going to streamline some stuff." And then this was talked about in the uh earnings call. So here's what Josh said in the earnings call. Now keep in mind, remember they laid off people. Then he sent out this very nice memo saying, "Hey, it's the best part is privilege is working with you, the people." He did say this. Here we go. We're committed to implementing AI in a way that keeps human creativity at the center of everything we do and of course respects creators and a and it adds tremendous value of our own intellectual property.

[00:08:10]For our shareholders, we see AI as a potential driver of improved returns over time, which will include making the production process more efficient and increasing the volume of content that we can actually put out in streaming specifically. So really what he's saying there is, hey, yeah, we're we're embracing AI and AI is going to help us create all of our streaming content and it's going to help us with creating the v volume of content. We're going to be putting out so much more content out because of AI. He then says that AI is a real powerful accelerant for Disney.

[00:08:41]Accelerant that's like, you know, something that's like takes off like you want when you start a fire, you need an accelerant to get that fire burning. And he's saying that this is what AI is. And then he says this, "We see a significant opportunity to make it easier for families to plan their trips to optimize all their time with us and to personalize their experience. Um, we're using AI to reduce the complexities around planning and booking a trip and trying to make a whole experience specifically tailored to what our guests want most."

[00:09:14]This is really interesting to me because like he they laid off a bunch of employees, particularly the visual development department of AI, uh, Marvel. Then he sent out this memo. I think Josh is incredibly smart. I think he's incredibly smart. I think his business intuitive. I think he sent out that mo memo on the 24th of April as a precursor to this to this move. I think if he didn't say anything and just went to this this earnings call and talking about how they're going to be embracing AI that there would be like some backlash. But he went out to the the cast members like, "Hey, we're working together. We're in this together. I respect you guys. Let's build this together." And so that way when he starts talking about how they're gonna be using AI to create all of the stuff and how they're going to be using AI to streamline the processes that he's like he's can go back and say, "But I'm still working with the employee the cast members." I think it was to soften the blow to the cast members. And so Disney is really really doubling down on AI, which is just kind of surprising to me because I always when I think of Disney, I think of Walt Disney, I think he created all those buildings that had windows so all the artists can be drawing things and creating and being creative and doing great storytelling and coming up with new ideas. And I always thought Disney would be like the last company that want to get into AI.

[00:10:24]And it sounds like Disney is the forefront of it. They're pushing for it.

[00:10:27]Uh they believe that it's going to help accelerate revenue and make it easier for people to tend parks. The other thing that it was mentioned, it wasn't mentioned on this earnings call, but it was mentioned a couple days ago. Josh Tomorrow is really interested in creating a super app. This super app, one app that will do everything for you at Disney that you do. You don't have this makes it super easy. And he wants to use AI to help create a super app to make your experience at Disney the easiest that it is. All right, guys.

[00:10:52]There you go. The earnings call. Disney beat they beat their expectations. Their revenue went up by 5%. Dennis went down by 1% but and it looks like they're going to be embracing AI and that's what's going on here in the world of Disney today. If you have any questions, put it down in the comments down below.

[00:11:07]Let me know what your thoughts are. I would love to hear it.

[00:11:11]And here's the thing. I know this. I know that most of the people who are watching this, you love Disney. Like I love Disney. We all love Disney. And prices are getting more expensive. But you know what? There are some loopholes on get prices cheaper. Do not buy it off the Disney website. It's more expensive if you do that. I'll put a link down below. Did you know you get adults at kids prices? You can get kids for like $49 a day. They get hotels like the fourth night free. There's all these little things that you can exploit to reduce the cost of your vacation.

[00:11:38]There's a link down below or you can just call 1855 Getaway and tell them Park sent you and you'll get the lowest prices on your Disney vacation. Don't fall for it and spend top dollar when you can actually save money. Just don't do that. All right guys, I'll see you guys in the next video. Got lots of great stuff coming up here. Hit that like button. Did you know you can do that for three for free? It's a little thumb. Boom. Boom. Boom. Boom. Boom.

[00:11:58]Boom. Hit the subscribe button. You guys, we once we hit 300,000, we are going to make this massive huge announcement be changing our channel drastically once we hit 300,000 subscribers. And we're almost getting there. So, you need to subscribe so you can be around for that. I'll see you guys later. Talk later. Bye-bye.