Disney: profit beats Street ahead of Disney+ launch
(CercleFinance.com) - Walt Disney's quarterly profit topped Wall Street estimates as the US media giant prepares for the launch of Disney+ on 12 November.
Net profit dropped to 785 million dollars, or 43 cents per share, from 2.3 billion dollars, or 1.55 dollar per share, a year ago.
Excluding certain items affecting comparability, diluted EPS for the quarter decreased 28% to 1.07 dollar, above Wall Street's average target of 96 cents.
Revenue rose 34% to 19.1 billion dollars.
The company's movie studios, which released "The Lion King", "Toy Story 4" and "Aladdin" over the quarter, saw revenue increase by 52% to 3.3 billion dollars, with operating income jumping 79%.
"Key is obviously what level of success Disney+ has in the marketplace, starting with its launch next Tuesday in the U.S., Canada and the Netherlands," Credit Suisse said.
The video streaming service will then launch in New Zealand and Australia on 19 November, followed by Western Europe on 31 March.
Credit Suisse estimates 6.8 million subscribers fot the first quarter and 15.5 million for fiscal year 2019/2020.
Disney shares were up 5% in early trading on these fourth-quarter results.
The stock has risen more than 27% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Net profit dropped to 785 million dollars, or 43 cents per share, from 2.3 billion dollars, or 1.55 dollar per share, a year ago.
Excluding certain items affecting comparability, diluted EPS for the quarter decreased 28% to 1.07 dollar, above Wall Street's average target of 96 cents.
Revenue rose 34% to 19.1 billion dollars.
The company's movie studios, which released "The Lion King", "Toy Story 4" and "Aladdin" over the quarter, saw revenue increase by 52% to 3.3 billion dollars, with operating income jumping 79%.
"Key is obviously what level of success Disney+ has in the marketplace, starting with its launch next Tuesday in the U.S., Canada and the Netherlands," Credit Suisse said.
The video streaming service will then launch in New Zealand and Australia on 19 November, followed by Western Europe on 31 March.
Credit Suisse estimates 6.8 million subscribers fot the first quarter and 15.5 million for fiscal year 2019/2020.
Disney shares were up 5% in early trading on these fourth-quarter results.
The stock has risen more than 27% year-to-date.
Copyright (c) 2019 CercleFinance.com. All rights reserved.