Disney (DIS) stock jumps 5% after it beats Q3 revenue expectations

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Disney (DIS) stock jumps 5% after it beats Q3 revenue expectations

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 Disney (DIS) stock jumps 5% after it beats Q3 revenue expectations
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Highlights

  • Walt Disney Company’s (NYSE: DIS) total operating income was US$2.3 billion in Q3 compared to US$1.09 billion in the year-ago quarter.
  • Its net income from continuing operations was US$923 million, or US$0.50 apiece, compared with a loss of US$4.72 billion, or US$2.61 per share, in Q3 of fiscal 2020.
  • The stock was up 5.28% to US$188.75 in the after-hours trading.

Stocks of The Walt Disney Company (NYSE: DIS) jumped more than 5% after announcing its third-quarter earnings Thursday. The stock was up 5.28% to US$188.75 in the after-hours trading.

The overall revenue of the California-based firm surged by 45 percent YoY to US$17.02 billion, beating analysts' forecast of US$16.76, as per the IBES Refinitiv data.

Its total operating income was US$2.3 billion compared to US$1.09 billion in the year-ago quarter. The net income from continuing operations was US$923 million, or US$0.50 apiece, compared with a loss of US$4.72 billion, or US$2.61 per share, in the Q3 of fiscal 2020.

Its cash from operations surged around 26% YoY to US$1.4 billion, while its free cash flow came in at US$528 million. Presenting the quarterly results, Disney CFO Christine McCarthy said that reservations in the company's theme parks remained strong despite covid.

Florida, where the Walt Disney World Resort is located, is the epicenter of new cases. However, Chapek has expressed optimism about the growth of the park business in the coming months.

Disney's theme parks saw more visitors after restrictions were eased. Revenue from theme parks increased for the first time from April through July 3 period, at US$4.34 billion, compared to the figures in the past five quarters.

Disney’s earnings per share were US$0.80, excluding certain items as of July 3, topping Wall Street's estimates of US$0.55, the Refinitiv data showed.

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Source: Pixabay

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The media and entertainment firm has a market capitalization of around US$325.757 billion. The DIS stock rose 0.23% YTD. The forward P/E 1 Yr. is 76.32, and earnings per share is US$-2.50.

The stock’s 52-week highest and lowest price was US$203.02 and US$117.23. Its share volume is 11,085,064.

The company has three online subscription platforms: Disney+, Hulu, and ESPN+. The company has added about 15 million new subscribers in the quarter to around 174 million. In addition, the number of paid subscribers for Disney+ was 116 million at the end of Q3, beating analysts' projections.

The platform has attracted more users during the quarter because of its new featured series on the Marvel character "Loki", which was a favourite among the sci-fi-fantasy reality content fans.

Bottom line

The media and entertainment businesses are seeing a comeback after the pandemic restrictions are being lifted in most geographies. In the US, the government has already relaxed some of the rules, prompting businesses to resume their operations. The rapid vaccinations and massive government stimulus packages are helping to lift demand for various goods and services. The entertainment industry is likely to bounce back strong with the improvement in the covid situation.

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