Analysts were split prior to Disney’s earnings report today. On one hand, analysts thought Disney+ numbers would fall (because other streaming services have seen drops in active users as the pandemic has waned). They also anticipated an unlucky quarter for Disney’s parks.
Some analysts, however, expected a blowout. 🏰 ✨
Many investors will be happy to hear that analysts were a bit too pessimistic. Disney reported an EPS and revenue beat today, with $17.02 billion in revenues and $0.80 EPS. Analysts expected revenues of $16.76 billion and EPS of $0.55.
The big beat came as Disney’s media and entertainment division posted $12.68 billion in revenue, an 18% YoY increase. Disney’s Parks, Experiences, and Product segment grew more than 100% YoY to $4.31 billion — this is evidence of a strong post-COVID recovery. It hasn’t fully recovered, but the PEP vertical posted a profit of $356 million this quarter, compared to a loss of $1.87 billion this time last year.
Disney’s “direct-to-consumer” streaming division concerned investors, but ultimately delivered. Disney is a stakeholder in Hulu, which reported higher subscription and advertising revenue. Hulu’s performance offset a higher loss from Disney+ caused by programming/production/marketing/technology costs. Despite its loss, it’s hard to discount that Disney+’s paid subscriber count has grown over 100% YoY.
All-in-all, the company’s profit reached $918 million. That might seem ‘small’ for a $200 billion company, but Disney’s recovery is admirable. You could even say… magical. 😉 This time last year, $DIS reported a quarterly loss of $4.72 billion.
$DIS climbed aboard its magic carpet in the afterhours, soaring 5.14% after the close. 🌙