Walt Disney shares up 3.2% after Q4 earnings
Disney CEO Bob Iger highlighted the significant progress made since he returned to the helm of the group a year ago.
He told investors "while we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again." It comes as Walt Disney exceeded Wall Street's earnings expectations at 82 cents per share, to be compared with the 30 cents recorded last year and 11 cents higher than analysts' forecasts. Revenue however narrowly missed forecasts. Disney reported nearly seven million Disney+ streaming subscribers in the quarter. Disney+ and Disney+ Hotstar together boast 150.2 million subscribers, ahead of an estimate of 147.4 million. Disney now says it is on track to achieve $7.5 billion in annualised savings, as it aggressively manages costs, and the company plans to reinstate a dividend payment to shareholders by the end of 2023.
(AI Video Transcript)
Disney's shares
Disney's shares jumped higher after the company impressed investors with its earnings results for the fourth quarter. They made 82 cents per share, which is more than double what they made in the same period last year and exceeded analysts' expectations. However, their revenue fell slightly short of predictions. The company's streaming service, tastylive, had an impressive seven million subscribers for the quarter, and when combined with tastylive Hotstar, they now have a whopping 150.2 million subscribers, surpassing what experts had estimated.
Disney's entertainment unit
Disney's entertainment unit, which includes their TV networks, film studios, and streaming services, made an operating profit of $236 million, a significant turnaround from the previous year's loss of over $600 million. The company was struggling due to an ongoing strike by actors, but it seems like the strike may be coming to an end soon, allowing the actors to get back to work.
Disney's experiences segment
In addition, Disney's experiences segment, which includes their theme parks, resorts, cruise lines, and consumer products, saw a notable increase in operating income, reaching $1.8 billion. CEO Bob Iger expressed his satisfaction with the progress they have made under his leadership, saying that their efforts to address problems have put them on a path towards rebuilding their business.
The stock chart
The stock chart clearly shows that Disney's shares are on the rise, reaching levels not seen since mid-August. The stock closed at $87.32, and investors are eagerly waiting to see how the market will react when it opens at 9 o'clock UK time. The market will likely respond to the news of a potential deal with the actors' union, as reported by the L.A. Times.
All in all, Disney seems to be in a strong position both financially and in terms of its reputation in the world. They have exceeded expectations in their earnings, are attracting a significant number of subscribers to their streaming services, and their entertainment and experiences segments are showing signs of improvement.
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.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
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.
