From the financial report, Disney’s revenue and net profit were lower than market expectations. After the release of the financial report, Disney’s share price fell 5%.
On August 7, Disney, the entertainment empire company, released its earnings report for the new quarter. As a highly profitable company, Disney’s earnings report rarely disappoints investors. From the financial report, Disney’s revenue and net profit were lower than market expectations. After the release of the financial report, Disney’s share price fell 5%.
In the first half of this year, Disney’s share price performance was very good, and it is also a rare company that can keep its share price rising. Before the release of the earnings report, as of the close of August 5, Disney’s stock price rose by 27% in 2019, outperforming the broader market and peers. So far in 2019, the Standard & Poor’s 500 index has risen 14%, midstream media giant Netflix has risen 14%, Discovery Channel has risen 17%, and Amazon has risen 17%. In contrast to the gains of these giants, Disney’s stock price performance is very conspicuous.
From Disney’s earnings report, the lower-than-expected net profit was mainly due to its earlier $70 billion acquisition of 21st Century Fox’s entertainment business. Disney+, which will invest heavily in the second half of the year, will be launched in November. This service has also been highly anticipated by the outside world. Some people even think that Disney will be an important promoter of the wave of streaming media. Although the overall development of Disney is still very stable, there are still some parts that cannot be relaxed. The US Stock Research Institute analyzes its new financial report and analyzes the opportunities and challenges of Disney from the current development status.
Disney earnings and net profit were lower than expected, and the acquisition of Fox was the biggest reason for lower-than-expected profit
Before the earnings report, the outside world is optimistic about Disney’s quarterly earnings performance, mainly because the good performance of the box office will drive Disney’s operating profit to the highest level in three years, analysts forecast of 4.33 billion US dollars. Disney’s media network is expected to contribute $2.24 billion, and the theme park’s early summer months are expected to bring in $1.82 billion in profits, while the company’s young streaming media technology business has suffered losses.
According to earnings reports, Disney’s revenue rose 31.75% year-on-year to US$20.25 billion, lower than analysts’ expectations of US$21.44 billion. Net profit for the third quarter was $1.76 billion, and adjusted earnings per share were $1.35, which is also less than the expected $1.75. At the user scale, Disney said that ESPN+ currently has 2.4 million subscribers and Hulu has 28 million subscribers. After the release of the earnings report, as of the end of the article, Disney’s after-hours share price fell 3.86%, the stock fell to 136.40 US dollars, the market value of 255.323 billion US dollars.