Here were the fiscal year third quarter results against Wall Street expectations:
- Revenue: $11.78B v. $12.39B (actual: -42% year-over-year)
- Media Networks: $6.56B v. $6.28B (-2%)
- Parks Revenue: $983M (-85%)
- Adjusted Earnings Per Share: 8 cents v. 64 cent loss
The pandemic, which has almost wiped professional sports out for the year, put significant pressure on advertising revenue. And the parks revenue was down because the reopening has only recently begun and without much vigor.
Here’s what management said on the earnings print:
"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. 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.”
Disney’s direct-to-consumer business, largely focused on streaming and subscriptions, is key to the company’s long-term growth and earnings power.
The stock rose 4.5% to $122.50. It was down 7.8% from June 8 into earnings, as it is largely seen as a “reopening stock.”