Walt Disney Co (NYSE: DIS) stock trades firm despite subdued results

Free $100 Forex No-Deposit Bonus

Walt Disney Co (NYSE: DIS) stock rose over 0.2% on 6th May, 2020 (as of 12:37 pm GMT-4; Source: Google finance) even though the company reported 90% fall in the second quarter profit to $460 million & missed the analysts’ estimates for the period. Disney’s theme parks division, has reported $5.54 billion in revenue, down from $6.17 billion a year ago, while the analysts on average expected it to be $5.75 billion. The company now plans to reopen Shanghai Disneyland in China on May 11 with new precaution, that includes the attendance limits, masks and temperature checks and the company is “evaluating a number of different scenarios” for reopening other parks. The company anticipates the COVID-19 impact on operating income at the Parks, Experiences and Products segment was about $1 billion mainly due to revenue lost due to the closures. Overall, the company anticipates that the COVID-19 impacts on the current quarter income from continuing operations before income taxes across all of the businesses are of $1.4 billion.

Moreover, the TV networks, including ESPN, which depends upon live sports to make big ad revenue, has delivered sales of $7.26 billion, up from $5.53 billion a year ago while the analysts on average expected is to be $6.6 billion. Disney also is eyeing the week of May 11 for the return of some ESPN studio shows, which is anticipated to expand their live and quick turnaround studio programming to 11 straight hours each weekday. Further, the one relief valve is anticipated to be Disney’s newest offering, that includes streaming services, which centers on the Disney+ and Hulu offerings. Disney’s direct-to-consumer segment has reported the revenue of $4.12 billion, which is up from less than $1 billion a year ago. The analysts on average anticipated sales to be of $4.35 billion in that division, the only segment that saw estimates rise since the end of January. Meanwhile, Disney+ launched in November has passed 50 million paying subscribers in April, which is a stronger-than-expected start even for a service that provoked high expectation, but still has doubters. The movie-studio segment had reported revenue of $2.54 billion but lower than the average analyst estimate of $2.62 billion

DIS in the second quarter of FY 20 has reported the adjusted earnings per share of 60 cents, while reported the adjusted revenue of $18.01 billion in the second quarter of FY 20, beating the analysts’ estimates for revenue of $18.06 billion, according to FactSet.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.