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Disney+ was Disney’s only plus

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Disappointing quarter for Disney

The multimedia and entertainment conglomerate, Disney, posted yesterday its quarterly earnings. 

Sales plummeted 42% to $11.78 billion. The company reported a loss of $2.61 per share, compared to last year's gain of 79 cents a share. Analysts expected a loss of 64 cents/share and $12.4 billion worth of sales.

Disney announced a revenue of $11.78 billion, or an EPS of 8 cents. The consensus was forecasting $12.44 billion in revenue and a loss per share of 61 cents.

Another drop was in the revenue from amusement parks, products, and experiences, which decreased by 85% to $1 billion. At the same time, the quarterly revenue figures from studio entertainment decreased by 55% to $1.7 billion.

However, Disney managed to gain in other areas. Due to the pandemic, its Disney+ user base increased to 57.5 million active accounts. The media segment brought an income of roughly $3 billion, 48% higher than last year’s figures. 

After the report, Disney's stock price dropped 2%, but it managed to rebound and ended the extended session higher by more than 4%. Since the beginning of the year, Disney's shares lost 19%, while USA500 added 2%.

See on CAPEX.com how the pandemic affected other earnings reports!

Sources: investing.com, marketwatch.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.