Disney shares: earnings beat but streaming subscribers down again
Disney posted mixed results for the fiscal third quarter on Wednesday evening after the close on Wall St amid ongoing streaming woes and massive restructuring costs from pulling content from its platforms.
While adjusted earnings per share (EPS) came in at $1.03 against forecasts of 95 cents, revenue was short at $22.3 billion, forecasts were for $22.5bln according to Refinitiv.
Disney+ streaming subscriptions fell 7.4% to 146.1 million, versus 151.1 million expected. The majority of subscriber losses came from Disney+ Hotstar, where the company saw a 24% drop in users after it lost out on the rights to Indian Premier League cricket.
(Video Transcript)
Disney earnings
Walt Disney had a bit of a mixed bag when it comes to their latest financial results. While they managed to exceed expectations in terms of earnings, their revenue fell a bit short. One of the main issues they faced was a decrease in their streaming subscribers, mostly due to losing rights to the Indian Premier League cricket.
However, there were some positive developments as well. One exciting piece of news for Disney was their partnership with Penn Entertainment to launch ESPN Bet, a sportsbook. This deal is expected to bring in a hefty $2 billion. Additionally, Disney announced their plans to start paying dividends again by the end of 2023.
Share price surge
These announcements caused the stock price to surge, reaching levels not seen in months. However, the stock price also experienced some ups and downs throughout the day. Initially, it rose when news broke about Disney beating earnings expectations. But then it dropped, as concerns about their streaming services came to light. Ultimately, the stock ended up one percent after the closing bell.
Despite the challenges, Disney's adjusted earnings per share surpassed expectations, which is definitely a positive sign. On the other hand, the decline in streaming subscribers, particularly from their Disney+ Hotstar platform, is a significant obstacle that the company needs to overcome.
Investors did find some hope in the ESPN Bet deal and the plan to resume paying dividends. These developments provided them with a glimmer of optimism for the future. So, while there were some mixed results, Disney still has potential for growth and success in the long run.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
