We’re buying 70 shares of Disney at roughly $108. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 1,000 shares of Disney, increasing its weighting to 2.95% from 2.75%. Shares of Disney have pulled back roughly 5% since the company reported earnings last Wednesday morning. The decline, which took shares below $110 each, presents an opportunity to add to our position. Disney’s first quarter fiscal year 2025 results were initially well received. The company’s quarterly revenue of $24.69 billion edged out the consensus estimate and adjusted earnings per share (EPS) of $1.76 soared past expectations of $1.45. Cost reductions and margin improvement were two of the big stories from the quarter, with the company topping operating income estimates across its three divisions: entertainment, sports, and experiences, which includes its theme park and cruise line businesses. What stuck out to us was the profit improvement at Disney+. The streaming service is part of Disney’s direct-to-consumer business, which is off to a great start to the year with $293 million in operating income. DIS 1Y mountain Disney 1 year However, the stock ultimately closed lower on earnings day. The reasons were a small decline in Disney+ subscribers and management leaving full-year fiscal 2025 outlook unchanged despite such a large quarterly beat. When companies beat big on the bottom line, investors typically want to see management raise the full-year outlook by a similar degree. Otherwise, the market will fear the quarterly upside was borrowed from upcoming quarters. Our view is that management didn’t raise its outlook one quarter into its fiscal year out of conservatism. A lot can happen over the next nine months, and over-promising and under-delivering would cause reputational harm. By keeping expectations low, the company can beat and raise throughout the rest of its fiscal year. We also want to point out that Disney shares have been under pressure this week after The Wall Street Journal published a story late Saturday detailing the high cost of a Disney vacation. The story is something to be mindful of, but there hasn’t been too much pricing pushback yet — based on the company disclosing on the earnings call that experience bookings for this summer were up year over year. (Jim Cramer’s Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.