Disney shares rise as mixed earnings results, future plans, impress

Disney shares closed higher Tuesday and are in the green in out-of-hours trade as the media business posted mixed results that impressed investors.

Disney shares rise as mixed earnings results, future plans, impress

Disney shares closed higher in the US Tuesday, with after-hours activity also placing the stock in the green, Wednesday, as the media company posted upbeat – if mixed – results. While earnings per share impressed, revenues were a little below expectation. However, investors seem to like the overall picture.

Walt Disney shares closed 1.40% higher at $106.17, in the US Tuesday. The Disney stock is currently trading around 2% higher in out-of-hours US activity.

Disney theme parks prop up earnings

Disney reported that total revenues in the final three months of 2017 rose 4% from a year earlier to $15.35 billion. That was a little below market expectation for $15.45. However, adjusted earnings per share growth was strong, at 22% to $1.89.

Per Disney segment, results were mixed:

  • Media networks Q4 revenue growth was flat at $6.24 billion.
  • Theme Parks revenue grew 13% to $5.15 billion.
  • Studio entertainment Q4 revenues slipped 1% to $2.504 billion.
  • Consumer products and interactive media fell 2% to $1.45 billion.

“The strategic investments we’ve made have driven meaningful growth over the long term, and we remain confident in our ability to continue to deliver significant shareholder value,” said Disney Chairman and CEO, Robert A. Iger.

Iger also mentioned in the press release and earnings call that followed the online release, that talks and regulatory activity was continuing, with regards to Disney’s impending Fox purchase.

“The regulatory process has begun in numerous jurisdictions across the world,” Iger told analysts. “I'm even more enthusiastic about the businesses we're acquiring and the management teams that are leading them.”

Disney plans a busy 2018-19

As well as detailing the company’s performance in the final three months of 2017, Disney also discussed some future plans for the business.

Disney is in the process of creating a ESPN Plus app, that it plans to sell to US customers for $4.99 per month. It’s broader, direct-to-consumer streaming service, meanwhile, is set to be available some time in 2019.

“We’re excited about what lies ahead, with a robust film slate, the launch of our ESPN direct-to-consumer business, new investments in our theme parks, and our pending acquisition of Twenty-First Century Fox,” Iger said.

Top Equities Brokers

0 Brokers added for comparison:
Clear all