Disney Q2 earnings report: ‘a huge sigh of relief’

0

Disney Q2 earnings report: ‘a huge sigh of relief’

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
May 11, 2022

Disney reports weaker-than-expected results for its fiscal second quarter.

Subscriber growth at Disney+ in Q2 topped Wall Street expectations.

G Squared’s Victoria Greene discussed Disney results on CNBC Closing Bell.

The Walt Disney Co (NYSE: DIS) on Wednesday said its Q2 profit and revenue came in shy of Street estimates. Shares still went up 3.0% as subscriber growth at Disney+ topped expectations.

What Disney Q2 earnings report tells us

Net income printed at $470 million that translates to 26 cents per share.Adjusted EPS of $1.08 was much better than last year’s 32 cents.Revenue jumped 18.5% YoY to $19.25 billion in the recent fiscal quarter.FactSet consensus was for $1.19 of adjusted EPS on $20.05 billion in revenue.DTC, including streaming, brought in $4.9 billion; slightly below estimates.Added 7.9 million subscribers to Disney+ for a total of 137.7 million.Ended Q2 with over 205 million total subscribers, including ESPN+ and Hulu.

Experts had forecast 135.07 million subscribers for Disney+ and 204.4 million total across all DTC offerings. Content sales and licensing generated $1.87 billion in revenue this quarter versus $2.07 billion expected, as per the earnings press release.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Expert reacts to Disney quarterly results

Other notable figures include Media and Entertainment Distribution sales that were up 9.5% YoY but missed consensus by $80 million. Theme parks and products more than doubled to $6.65 billion, handily beating expectations. On CNBC’s “Closing Bell”, Victoria Greene said:

After Netflix miss, we were worried it’ll be a weak quarter for Disney. But they blew it out of the water. Subscriber growth was a huge sigh of relief. They’re still going into new markets so that’s a great sign. And they’re bringing an ad-supported tier to drive consumers as well.

The founding partner at G Squared Private Wealth says Disney’s intellectual property is better than its rivals, which will help it achieve its target of up to 260 million subscribers by 2024.

Disney+ also costs less than Netflix that makes it even more attractive in an inflationary environment, she concluded. Earlier this week, Jim Cramer loaded up on the stock down more than 30% for the year.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro

10/10

68% of retail CFD accounts lose money

Visit site

Industries


Leisure & entertainment


Media


North America


Stocks & Shares


USA


World

Generated by Feedzy