Walt Disney Co (NYSE: DIS) stock fell over 2.6% on 14th May, 2021 (Source: Google finance) as the company’s second-quarter revenue declined as the pandemic continued to weigh on its parks and theme parks. Disney+ subscriptions continued to rise but missed some analyst expectations.
However, net income beat expectations for the second quarter which the company says are signs of recovery can be seen across the company’s business as the pandemic begins to wane. Disney+ subscribers more than doubled from a year ago to 103.6 million subscribers as of April 3, but is lower than the 109.3 million analyst expected, according to FactSet. The company is still on track to reach its goal of 230 to 260 million subscribers for Disney+ by 2024. The growth in subscriber signups was slower during the first two months of the year due to no major product launches and a price increase in the Africa, Middle East and Asia region. However, the signups grew more quickly in March. Overall, the company has reported profit of $901 million compared to $460 million, in last year’s second quarter.
DIS in the second quarter of FY 21 has reported the adjusted earnings per share of 79 cents, beating the analysts’ estimates for the adjusted earnings per share of 26 cents, according to FactSet. There is one time costs related to closing an animation studio and some Disney-branded retail stores, as well as severance at some parks and resorts. The company had reported 13.4 percent decline in the adjusted revenue to $15.61 billion in the second quarter of FY 21, missing the analysts’ estimates for revenue of $15.86 billion.
The revenue from parks declined 44% to $3.17 billion. But parks are beginning to show signs of life after being shuttered during most of the pandemic. Disneyland in Anaheim, California, reopened on April 30, after the quarter ended. Disney World in Orlando and other parks around the world were open during the quarter, although at reduced capacity.
Movie theaters shuttered during the pandemic have also begun to reopen since late March. Disney plans to release “Cruella,” a live-action movie about the villain in “101 Dalmations,” starring Emma Stone, in theaters on May 28. It will release Marvel’s “Black Widow” starring Scarlett Johansson in July. Both will also be offered on Disney+ at the time of release for $30.