While many on Wall Street feared a cursed quarter when Disney reported its quarterly earnings after the bell Tuesday, results came in better than feared, though more mixed than magical.
Adjusted earnings per share came in at 8 cents, exceeding expectations for a loss of 64 cents per share, though falling 94% from the same period last year.
Revenue of $11.78 billion slightly missed estimates of the $12.4 billion expected by FactSet, falling 42% from last year. Disney’s Parks, Experiences and Products revenue fell 85% to $983 million as the coronavirus pandemic continues to impact the entertainment giant’s parks and cruises businesses in addition to serving as a detriment to its TV and film businesses.
Highlighting the quarter was strong performance of its Disney+ subscription service, which ended the quarter with 57.5 million subscribers.
“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” Disney CEO Bob Chapek said. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions -- a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”
During Disney’s earnings call with analysts, Disney announced it will release the long-awaited feature ‘Mulan’ for $29.99 and will launch a new streaming service under its Star brand in 2021.
Has Disney finally done enough to get Jim Cramer interested in Disney+?
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