Disney stock skyrockets after earnings beat—days before Disney Plus debut
Watch out, Netflix. The Walt Disney Company just sent a strong message to investors less than a week before its highly anticipated streaming service is set to debut.
The entertainment giant reported stellar earnings and revenue for its fiscal fourth quarter, beating analysts’ estimates on both counts with help from its studio entertainment unit, where revenue jumped more than 50% compared to the same period last year.
Adjusted earnings per share were $1.07 on revenue of $19.1 billion, versus expectations of 95 cents on revenue of $19.04 billion, according to consensus estimates cited by CNBC. The results reflect the consolidation of Disney’s acquisition of Twenty-First Century Fox and its controlling stake in Hulu, Disney said.
Here are some of the top lines from Disney’s major business units:
Disney shares were up almost 4% in after-hours trading.
The jump in studio revenue is especially notable, as it reenforces how Disney’s premium content slate—a portfolio that includes brands from Marvel and Star Wars to Pixar and Disney animation—will be a force (pun intended!) to be reckoned with as Disney enters the TV streaming wars next week. Disney+ is set to launch on November 12.
The company credited three blockbusters for the fourth-quarter haul (The Lion King, Toy Story 4, and Aladdin), which outperformed their counterparts (Incredibles 2 and Ant-Man and The Wasp) released during the same period last year.
You can check out the full earnings release here.
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