Disney-Heavy ETFs to Watch Amid Q1 Earnings & CEO Change

On Feb. 2, before market open, the Walt Disney Company DIS reported first-quarter fiscal 2026 adjusted earnings of $1.63 per share, which beat the Zacks Consensus Estimate by 3.8% but decreased 7% year over year.Revenues rose 5% year over year to $25.98 billion but missed the consensus mark by 0.03%. Net income for the quarter was $2.48 billion, or $1.34 per share, down from $2.64 billion, or $1.40 per share in the same period a year earlier, representing a 4% decline in reported EPS. Disney’s total segment operating income decreased 9% year over year to $4.6 billion in the reported quarter compared with $5.1 billion in the year-ago quarter.Recently, the Walt Disney Company announced that Josh D’Amaro will take over as CEO, succeeding longtime chief Bob Iger. D'Amaro served as the chairman of Disney Experiences, which witnessed a 6% increase in its revenues year over year to $10.1 billion. According to Motley Fool, as quoted on Yahoo Finance, the leadership transition appears constructive for Disney investors, as D’Amaro’s appointment sends a positive signal.Disney's Segment BreakdownEntertainment revenues, which constitute about 44.7% of total revenues, increased 7% year over year to $11.61 billion. However, the Entertainment segment’s operating income plunged 35% year over year to $1.1 billion.Domestic revenues for Experiences were $6.91 billion, up 7% year over year, while international revenues increased 7% year over year to $1.75 billion in the reported quarter. The segment’s operating income was $3.31 billion, up 6% year over year. The Domestic Parks & Experiences segment reported operating income of $2.15 billion, up 8% year over year. Theme parks and admissions revenues grew 7% to $3.3 billion, while resorts and vacations revenues climbed 9% to $2.41 billion.Streaming revenues, excluding Hulu + Live TV and Fubo, grew 11% to $5.35 billion, with subscription fees climbing 13% to $4.4 billion. Streaming reported an operating margin of 8.4%. Disney+ and Hulu are on track to merge into a unified app experience later this year. Disney+ and Hulu combined streaming services reported operating income of $450 million, up 72% from $261 million in the prior-year quarter.Content Sales/Licensing and Other revenues increased 22% year over year to $1.94 billion, reflecting higher theatrical distribution from the releases of Zootopia 2, Avatar: Fire and Ash, Predator: Badlands and Tron: Ares compared with Moana 2 and Mufasa: The Lion King in the prior-year quarter.Meanwhile, Disney’s Sports revenues, which constitute about 18.9% of revenues, increased 1% year over year to $4.91 billion. However, Sports segment operating income declined 23% year over year to $191 million.Fiscal 2026 OutlookFor fiscal 2026, Disney expects double-digit adjusted earnings per share growth compared to fiscal 2025. The company plans $9 billion in capital expenditures and $24 billion in content investment across Entertainment and Sports.For the second quarter of fiscal 2026, Disney expects Entertainment operating income to be similar to the same quarter a year ago, with streaming profit of approximately $500 million, representing a roughly $200 million year-over-year increase.Disney’s Stock Under the MicroscopeWalt Disney currently has an average brokerage recommendation (ABR) of 1.56 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 31 brokerage firms. The current ABR compares to an ABR of 1.57 a month ago, based on 29 recommendations.Of the 31 recommendations deriving the current ABR, 21 are Strong Buy and four are Buy. Strong Buy and Buy, respectively, account for 67.74% and 12.9% of all recommendations. A month ago, Strong Buy made up 68.97%, while Buy represented 10.34%, indicating that the majority of the analysts remain bullish.Based on short-term price targets offered by 27 analysts, the average price target for DIS comes to $134.89, representing an increase of 29.43% from its current level, with the forecasts ranging from a low of $77.00 to a high of $160.00. The media giant’s stock is priced at $104.22 (as of market close on Feb. 3). The company has a Zacks Rank #4 (Sell) and a Momentum Score of A.ETFs to ConsiderBelow, we focus on ETFs that have exposure to Disney.Diamond Hill Large Cap Concentrated ETF DHLX has an exposure of 4.57% to Disney.Invesco S&P 500 Equal Weight Communication Services ETF RSPC has an exposure of 4.52% to Disney.Motley Fool Value Factor ETF MFVL has an exposure of 4.41% to Disney.Invesco NASDAQ Internet ETF PNQI has an exposure of 4.35% to Disney.State Street Communication Services Select Sector SPDR ETF XLC has an exposure of 4.21% to Disney.Vanguard Communication Services ETF VOX has an exposure of 4.17% to Disney.iShares Global Comm Services ETF IXP has an exposure of 3.96% to Disney.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Walt Disney Company (DIS): Free Stock Analysis Report Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports Vanguard Communication Services ETF (VOX): ETF Research Reports iShares Global Comm Services ETF (IXP): ETF Research Reports State Street Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports Invesco S&P 500 Equal Weight Communication Services ETF (RSPC): ETF Research Reports Motley Fool Value Factor ETF (MFVL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks