Disney shares rise 4% on jump in revenue

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Shares of the Walt Disney Co. gained 4% in after-hours trading Thursday after it reported quarterly results roughly in line with Wall Street analysts’ estimates — days before its much-anticipated streaming service begins.

Disney DIS, +1.29%  said it earned $1.05 billion, or $1.07 a share, compared with $2.32 billion, or $1.55 a share, in the year-ago period.

Revenue rose 34% to $19.1 billion, from $14.3 billion a year ago.

Revenue from the company’s media networks rose to $6.5 billion, up 22% from $5.3 billion a year ago. Revenue from parks and resorts came in at $6.65 billion, up 8% from $6.14 billion a year ago. Disney’s studio entertainment segment brought in $3.3 billion in revenue, up 52% from $2.2 billion last year, thanks to strong box-office numbers.

“We’ve spent the last few years completely transforming the Walt Disney Co. to focus the resources and immense creativity across the entire company on delivering an extraordinary direct-to-consumer experience, and we’re excited for the launch of Disney+ on Nov. 12,” Disney Chief Executive Robert Iger said in a statement announcing the results.

Analysts polled by FactSet had expected Disney to report adjusted fiscal fourth-quarter earnings of 94 cents a share on sales of $19.2 billion.

See also: Roku stock tumbles as analysts say modest beats fail to justify massive rally

The company’s $6.99-per-month streaming service, Disney+, is scheduled to launch next week, featuring content from Marvel, Pixar, “Star Wars,” National Geographic and more.

Disney+ also announced a distribution deal with Amazon.com Inc. AMZN, -0.42%   to carry its content on Fire TV, as well as through Samsung Electronics 005930, -0.75%  and LG.

The entertainment giant faces a gantlet of rivals, new and old, in the burgeoning streaming market: Apple Inc. AAPL, +1.15%  , which launched Apple TV+ on Nov. 1; industry leader Netflix Inc. NFLX, +0.34%  ; and forthcoming services from AT&T Inc.’s T, +0.43%  HBO Max and Comcast Corp.’s CMCSA, +1.09%  NBCUniversal’s Peacock.

In August, Disney reported fiscal third-quarter profit and sales that missed Wall Street’s expectations, a disappointment Disney pinned on the integration of its $71 billion acquisition of assets from 21st Century Fox.

Disney had projected that the new business would skim about 35 cents a share off its profit, but it subtracted around 60 cents a share.

Disney shares have gained 20% so far this year, compared with 23% and 19% for the S&P 500 SPX, +0.27%  and the Dow Jones Industrial Average DJIA, +0.66%  , respectively, in the same period.

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