Disney beat Wall Street forecasts for its fourth-quarter profits while continuing to ramp up investments ahead of its much-anticipated Disney+ streaming service launch.
Disney said adjusted earnings for the three months ending in September, the company's fiscal fourth quarter, came in at $1.07 per share, down 27.7% from the same period last year but firmly ahead of the Street consensus forecast of 95 cents per share. Group revenues, Disney said, rose 34% to $19.01 billion, just shy of analysts' forecasts of $19.04 billion.
"In addition to creating a phenomenal product, we're supporting the launch of Disney Plus with an unprecedented marketing campaign drawing on every existing connection The Walt Disney Company has with consumers," CEO Bob Iger told investors on a conference call late Thursday. "It's a historic effort to raise awareness and drive demand, one that reflects our all-in commitment to the strategic initiatives and our determination to launch big and scale fast."
Action Alerts PLUS senior portfolio analyst Jeff Marks said that he believes that Netflix (NFLX - Get Report) has lost its pricing power with the launch of Disney+ and that it's going to need to "do something" to make up for it.
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