Walt Disney World is said to be the happiest place on earth, but unfortunately, its stock isn’t. âšī¸
The company’s shares are approaching fresh year-to-date lows after reporting earnings and revenue that missed expectations.
Its adjusted earnings per share of $0.30 was well below the $0.55 expected. Total revenues of $20.15 billion also fell short of the $21.24 billion expected, driven by weakness in its media and entertainment division, where revenue fell 3% YoY to $12.7 billion. Again, that was well off the $13.9 billion expected.
On the positive side, Disney+’s total subscriptions beat expectations. The 164.2 million number topped the 160.45 million expected, with the service adding 12.1 million subscriptions during the quarter. The company has price hikes for this service planned in December and will also introduce an ad-supported tier to help boost revenues. đē
Overall, executives remain focused on furthering the link between the company’s divisions and accelerating its direct-to-consumer strategy. đ¤
For now, though, its stock remains at the mercy of the current market environment. $DIS shares fell another 7% today.