Media and entertainment conglomerate Disney (DIS) crushed fiscal first quarter estimates late Thursday with a surprise profit as the number of streaming subscribers jumped. Disney stock rose.
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Disney Earnings Report
Estimates: Analysts expect Disney to post a loss of 45 cents a share vs. EPS of $1.53 a year ago, as revenue drops 24% to $15.8 billion, according to Zacks Investment Research.
Results: EPS of 32 cents on revenue of $16.25 billion. Disney+ subscribers climbed to 94.9 million from as of Dec. 2. They will deliver a bigger revenue boost in March, when the monthly fee rises by $1 to $7.99 in the U.S. and by 2 euros to 8.99 euros a month in Europe.
While theme parks and theaters remain closed and cruise ships docked, streaming growth is picking up. Disney+ represented 6% of consumer’s average time spent streaming weekly in December 2020, while rival Netflix (NFLX) declined slightly to 28% from 31% in December 2019, JPMorgan analyst Alexia Quadrani wrote in a note to clients.
Pixar’s “Soul” finished No. 1 during Christmas week, according to Nielsen’s rankings. Shows like “WandaVision” and “The Mandalorian” have been big hits for Disney+. “The Mandalorian” has made headlines in recent days for another reason, too. Lucasfilm, which produces the Star Wars series, announced yesterday it had fired star Gina Carano, who played former Rebel Alliance soldier Cara Dune, for controversial political comments on social media.
Disney Stock
Shares rallied 2% late after closing up 0.7% at 190.91 on the stock market today. Disney stock surged past a buy point of 183.60 and is still within buy range from a flat base, according to MarketSmith chart analysis.
Its relative strength line, which compares a stock’s performance with that of the S&P 500, is rising. Disney stock has an RS Rating of 73 out of a possible 99.
Among streaming rivals, Netflix fell 1% Thursday, Apple (AAPL) lost 0.2%, and Amazon (AMZN) dipped 0.7%.
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Will California Parks Reopen Soon?
Disney stock got a lift earlier this week, when Disneyland President Ken Potrock told employees that a ticketed food event was in the works for California Adventure in mid-March. Company officials said the event would run multiple days a week at reduced capacity.
The event would bring back about 1,000 workers to the park and raised hopes for a wider opening, which would help ease a major drag on the bottom line and Disney stock.
Disneyland is also considering “day-parting” annual passes when the park reopens, according to media reports. That means pass holders could visit the park for certain portions of the day at a reduced price. That would allow park officials to control crowds while reopening during a pandemic.
Meanwhile, California lawmakers introduced a bill last week that would allow Disneyland to reopen sooner than the current plan. The bill wants to place theme parks in the Orange (moderate) Tier 3 of the state’s Covid-19 guidance for reopening amusement and theme parks. Currently, theme parts are not allowed to reopen until the county in which they reside achieves Yellow (minimal) Tier 4.
In December, guidance was amended to allow…
Read More News: Disney Stock Up On Surprise Earnings As Streaming Subscribers Jump
