Disney Direct-To-Consumer Segment Profits In Q2, 'Operating Income Modestly Ahead' Of Analyst Expectations
Portfolio Pulse from Chris Katje
Disney's direct-to-consumer segment reported profitability in Q2, with operating income slightly ahead of analyst expectations. Despite this, Disney shares fell over 9% after the earnings report. The company beat earnings per share estimates but missed on revenue. Bank of America analyst Jessica Reif Ehrlich maintains a Buy rating and $145 price target on Disney, citing the company's strong assets and potential for future profitability in its streaming business. However, Disney anticipates softer results in the entertainment direct-to-consumer and parks segments in the next quarter.
May 07, 2024 | 3:50 pm
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Disney's Q2 earnings report showed profitability in its direct-to-consumer segment, with shares dropping over 9% following the announcement. The company beat EPS estimates but missed on revenue, with mixed guidance for future quarters.
Despite Disney's direct-to-consumer segment reaching profitability and beating EPS estimates, the stock price fell significantly due to missed revenue expectations and mixed future guidance. This suggests a short-term negative impact on the stock price, as market reactions are often influenced by both earnings outcomes and future expectations.
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