Disney Makes Surprise Profit

After the closing bell, Disney (DIS) reported a surprise Q2 profit of eight cents per share. I say surprise because Wall Street had been expecting a loss of 64 cents per share. That’s a huge beat.

The weak spot was revenue. For the quarter, Disney has $11.78 billion in revenue. That was below estimates for $12.37 billion. The only parts of Disney’s business that saw an increase in revenue were the direct-to-consumer and international businesses.

The big success story is Disney’s streaming service. I guess it helps that everyone is stuck at home! If you add up all the subscription services, Disney now has over 100 million paid subscribers. Disney+ is up to 57.4 million.

Revenue for their Parks, Experiences and Products business was down a staggering 85%. Disney’s Media Networks was only down 2%. As a result of the lockdown, Disney took a $3.5 billion hit to its operating income.

The shares are up 4.74% in after-hours trading.

Posted by on August 4th, 2020 at 4:16 pm


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