Stocks & Shares

Disney’s stock gains 5% following better than expected results in the Q4 earnings report

  • Disney beat Refinitiv's estimate for revenue and earnings per share in the fourth quarter.
  • Share prices hiked 5% following the earnings report on Thursday.
  • Disney's streaming service, Disney+, is set to launch on November 12th.
  • Disney's Hong Kong park noted negative outlook due to the ongoing protests.

California based multinational mass media and entertainment company, Walt Disney, announced its earnings report for the fourth quarter of 2019 on Thursday. Having beaten the analysts’ forecast for earnings per share (EPS) and revenue, the stock was reported to be trading 5% higher by the end of Thursday.

Disney Beat Refinitiv’s Estimate For Revenue And Earnings Per Share

Refinitiv had estimated 95 cents of adjusted earnings per share for Disney in the fourth quarter. The forecast for revenue was highlighted at $19.04 billion. Beating the estimates, Disney reported $1.07 of adjusted earnings per share while the revenue was noted at $19.1 billion.

Disney’s stock opened at $132.31 on Thursday. Following the release of the Q4 earnings report, share prices hiked to $140 level that was last seen in June 2019. As of Friday, the stock lost slightly and settled around $138, closing the week at $137.89.

Disney has released its Q4 earnings report a week before launching its streaming service, Disney +. Expected to hit the market on November 12th, the service will cost $69.99 annually ($6.99 per month), and is likely to make a variety of content more accessible for the viewers including that of Disney, Marvel, Pixar, Star Wars, and many more.

Bob Iger, the Chief Executive Officer (CEO) of Disney stated in an interview with CNBC that Disney+ has been extensively tested in the Netherlands. The tests, he commented, highlighted that the platform is all set to go public. Bob further added that the demography of the users, as per the tests, came out to be significantly wider than the company would have expected.

Other Noticeable Figures Included In The Q4 Earnings Report

Other noticeable figures accentuated in the Q4 earnings report include $6.5 billion in revenue for the media networks. Another $6.7 billion in revenue was reported to be linked with the parks and resorts in the fourth quarter of 2019. Disney also printed a revenue of $3.4 billion from direct-to-consumer services while studio entertainment generated a revenue of $3.3 billion for the company in 2019’s fourth quarter.

The ongoing protests in Hong Kong, however, were highlighted as a factor that contributed to Disney’s park in the region remaining under pressure as a source of earning. According to the CEO, the United States of America may have experienced delayed visitation in the fourth quarter since the majority of the visitors have been waiting for the launch of Star Wars attraction at Disneyland as well as in Disney World.

The stock market analysts have anticipated further upward movement in Disney’s stock in the upcoming week.

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