Many Analysts’ Remain Positive Post Disney’s Q3 Miss
The Walt Disney Company (DIS) released its Q3 results yesterday past the close missing consensus expectations mainly due to streaming investments, weak theme parks attendance, and the currently disappointing performance from Fox’s deal, as per reports.
Numbers from the report:
- Earnings per share of $1.35 were reported, compared with Wall Street’s expectations of $1.75 per share.
- $20.25 billion in revenue was generated as against an expectation of $21.47 billion.
- Disney’s direct-to-consumer segment witnessed revenues of $3.86 billion during the quarter.
- Increased investments in the ESPN+ and Disney+ streaming services led to Operating losses of $553 million from $168 million.
- Disney’s studio entertainment operating income recorded $792 million, an increase of 12% in comparison to last year.
“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” stated Bob Iger, Disney chairman, and CEO.
Despite unsatisfactory results from Fox’s deal, CEO Bob Iger remained positive about the acquisition and its future benefits, as reported. Many analysts’ too are reported to remain optimistic and felt the reported low performance due to recent acquisitions and launches like Disney+ are temporary snags.
“In our view, the investment thesis is the same and if we liked the stock before earnings, we love it on any weakness,”, “With so many moving pieces between the newly acquired Fox and Disney+ launch, there are bound to be some hits and misses each quarter.” stated J.P. Morgan analyst Alexia Quadrani.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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