Walt Disney Co (NYSE: DIS)
Shares of Walt Disney Co. jumped about 2% in after-hours trading Tuesday after the entertainment giant reported earnings and revenue that surpassed the estimates of Wall Street analysts, even as studio revenue fell 27% in the quarter. Disney stock ended the regular session with a gain of 0.75% to $112.66.
The entertainment giant intends to join the streaming market later this year, taking on key players such as Netflix and Amazon Prime Video. Disney currently holds a majority stake in Hulu, thanks to its $71.3 billion acquisition of the entertainment assets of 21st Century Fox last year.
Fiscal 2019 first-quarter profit of the company came to $2.79 billion, or $1.86 per share, compared with $2.91 per share in the year-ago period. Analysts polled by Refinitiv were anticipating earnings of $1.55 per share for the three months ended December 29, 2018.
The company posted revenue of $15.30 billion, compared with $15.35 billion in the same period last year. Analysts had called for revenue of $15.14 billion based on figures compiled by Refinitiv.
Disney saw revenue in its media networks business, rise 7% year-over-year to $5.92 billion in revenue. Revenue from park operations climbed 5% from earlier-year period to $6.82 billion, while direct-to-consumer and international unit accounted for $918 million of the company’s total sales during the quarter.
Walt Disney CEO Comments
“After a solid first quarter, with diluted EPS of $1.86, we look forward to the transformative year ahead, including the successful completion of our 21st Century Fox acquisition and the launch of our Disney+ streaming service,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “Building a robust direct-to-consumer business is our top priority, and we continue to invest in exceptional content and innovative technology to drive our success in this space.”
Walt Disney Co Profile
The Walt Disney Co. is a diversified international family entertainment and media enterprise. It operates through the following segments: Media Networks, Parks & Resorts, Studio Entertainment and Consumer Products & Interactive Media. The Media Networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, radio networks and stations.
The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida; the Disneyland Resort in California; Aulani, a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays.
The Consumer Products and Interactive Media segment licenses the company’s trade names, characters and visual and literary properties to various manufacturers, game developers, publishers and retailers throughout the world. It also develops and publishes games, primarily for mobile platforms, and books, magazines and comic books. The Walt Disney was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA. – CNN Money