How Analysts Got Disney Earnings So Wrong
Disney posted a surprise $0.08 in earnings per share (EPS) and $11.78 billion in revenue in the second quarter. Analysts were expecting a net loss of $0.64 per share and $12.39 billion in revenue.
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The Walt Disney Co. (NYSE: DIS | DIS Price Prediction) released fiscal third-quarter financial results after markets closed Tuesday. The Mouse House said that it had $0.08 in earnings per share (EPS) and $11.78 billion in revenue, compared with consensus estimates that called for a net loss of $0.64 per share and $12.39 billion in revenue. The same period from last year had $1.35 in EPS and $20.25 billion in revenue.
Something interesting to note is that while many analysts were calling for a net loss this quarter, a Disney loss would have been the first quarterly loss since 1984.
Media Networks revenues for the quarter decreased 2% to $6.56 billion, and segment operating income increased 48% to $3.15 billion. This segment comprises Cable Networks and Broadcasting which had revenues of $4.03 billion and $2.53 billion, respectively.
Parks, Experiences and Products revenues for the quarter decreased 85% year over year to $983 million, and segment operating income, or loss, in this case, came in at $1.96 billion. The operating loss for the quarter was due to closures at both the domestic and international parks.
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Studio Entertainment revenues decreased 55% to $1.74 billion and segment operating income decreased 16% to $668 million.
Direct-to-Consumer & International revenues for the quarter increased 2% to $3.97 billion and segment operating loss increased from $562 million to $706 million.
Disney reported that it had 57.5 million subscribers for its Disney+ streaming service. ESPN+ had a total of 8.5 million subscribers and Hulu subscribers totaled 35.5 million.
Disney stock closed Tuesday at $117.42, within a 52-week range of $79.07 to $153.41. The consensus analyst price target is $122.96. Following the announcement, the stock was up about 2% at $119.80 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
