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  • Writer's pictureRealFacts Editorial Team

Disney Stock Pummets on Earnings Report


Disney park train

Following its second-quarter results, entertainment giant Disney experienced a decline in its stock price on Tuesday. Disney posted a 30% rise in adjusted earnings to $1.21 per share, signifying a second consecutive quarter of growth deceleration. However, it surpassed expectations of $1.10 per share. The company fell short of revenue expectations, with a 1% rise to $22.08 billion, just below the forecasted $22.12 billion. 


On a more positive note, Disney's streaming service, Disney+, experienced a rise in subscribers, reaching 153.6 million, up from 149.6 million in Q1. However, this figure is still slightly lower compared to 157.8 million subscribers from the previous year. Operating income for Disney's direct-to-consumer entertainment business improved significantly to $47 million for the quarter, compared to a loss of $587 million in the previous year. 


Disney revised its full-year adjusted earnings outlook to 25% growth, up from the previous expectation of 20% growth. The first quarter for Disney was marked partially by a “board battle." Harrison Miller, Investors Business Daily author, stated, “Disney at the beginning of April won its "distracting" proxy board battle against Trian Fund Management and Blackwells Capital during its annual shareholder meeting.” With this distraction resolved, Disney is poised to sustain the growth investors anticipate. This influx of earnings information led to an over ten percent decline in Disney's stock price intraday on Tuesday, ultimately closing the day down by 9.5%.

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