Walt Disney beats Wall Street estimates in the fiscal first quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 12, 2021
  • Walt Disney beats Wall Street estimates in the fiscal first quarter.
  • Disney+ streaming service now has roughly 95 million paid subscribers
  • Disney shares were roughly 1% up in extended trading on Thursday.

The Walt Disney Company (NYSE: DIS) reported its financial results for the fiscal first quarter on Thursday that topped analysts’ estimates for earnings and revenue. The company reported a sharp increase in its paid streaming subscribers in Q1.

Disney shares were reported roughly 1% up in extended trading on Thursday. Including the price action, the stock is now trading at a per-share price of £140.68 versus a low of £62.22 per share in March 2020 when the impact of COVID-19 was at its peak.

Disney Q1 financial results versus analysts’ estimates

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According to Refinitiv, experts had forecast the company to print £11.53 billion of revenue in the first quarter. They had called for 29.74 pence of loss per share in Q1. In its report on Thursday, Disney topped both estimates posting a higher £11.79 billion of revenue in the recent quarter and 23.21 pence of earnings per share.

In comparison, Disney had posted £10.67 billion of revenue in the prior quarter (Q4).

As of 2nd January, the American diversified multinational said that its Disney+ streaming service now had roughly 95 million paid subscribers. Disney made £2.92 of monthly revenue on average per paid Disney+ subscriber in the first quarter versus the year-ago figure of £4.03.

The mass media and entertainment conglomerate, however, saw a 73% annualised growth in its direct-to-consumer revenue to £2.54 billion. In an announcement in November, Disney said it will cut 32 thousand jobs in the first half fiscal 2021.

Other prominent figures in Disney’s earnings report on Thursday include a 53% year over year decline in its revenue from parks, experiences, and products business. In the fiscal first quarter, the U.S. firm added, the ongoing Coronavirus pandemic resulted in a close to £1.89 billion hit to its operating income from this segment.

CEO Bob Chapek’s comments on Thursday

CEO Bob Chapek commented on the financial report on Thursday and said:

“We believe the strategic actions we’re taking to transform our company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146 million total paid subscriptions across our streaming services at the end of the quarter.”

Disney performed fairly upbeat in the stock market last year with an annual gain of close to 25%. At the time of writing, the Burbank-headquartered company is valued at £251.30 billion.

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