Disney, at time of writing, is trading at $89.40 a share. A lot less than its all-time high of $201.91 a share. As one can see, things have not been going well for Disney’s shareholders over the last couple years. Covid is, of course, a big factor in that as it hurt their parks business pretty badly but that has not been the company’s only problem. A lot of their latest movies haven’t been doing well. Their streaming service has not been able to make a profit. They are also in a good amount of debt after the acquisition of Fox. Disney has just not been doing well. Recently, however, the company had a pretty good earnings report. Can they turn things around?
Let’s look at the numbers. Disney brought in $21.2 billion this latest quarter which is up 5% year-over-year. It did, however, slightly underperform Wall Street’s estimate of $21.4 billion. Their earnings, however, did not underperform. Disney earned 82 cents per share vs the 71 cents per share analysts predicted.
Disney+ also had some great news as well. Disney+ gained 7 million subscribers this quarter which is around 3 million more than expected. This means that they now have 112.6 million subscribers. Disney also believes that Disney+ will reach profitability by the fourth quarter of 2024.
The company also seems to be focused on decreasing costs. That’s what I personally believe is their biggest problem. The budgets they are doing for their shows and movies are, in my opinion, just way too high. Unnecessarily high.
I think that what investors should be really happy about is the announcement that Disney will be reinstating a dividend. To me, that seems like a very positive sign.
All-in-all this was a good quarter for Disney.
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