Disney 1Q profit falls but beats expectations due to Disney+

Thursday, February 11, 2021 | Mae Anderson, AP Technology Writer


In this Jan. 9, 2019, file photo, guests watch a show near a statue of Walt Disney and Micky Mouse in front of the Cinderella Castle at the Magic Kingdom at Walt Disney World in Lake Buena Vista, Fla. The Walt Disney Co.'s net income fell sharply in its most-recent quarter, as the coronavirus pandemic still weighs heavily on many of its businesses, from theme parks to movies, the company announced Thursday, Feb. 11, 2021. (AP Photo/John Raoux, File)

NEW YORK (AP) — The Walt Disney Co.'s net income fell sharply in its most-recent quarter, as the coronavirus pandemic still weighs heavily on many of its businesses, from theme parks to movies.

But the results Thursday surpassed Wall Street's expectations thanks to subscribers flocking to Disney+ and other of the entertainment giant's streaming services.

Disney's parks and resorts have been closed or operating at significantly reduced capacity since shortly after the pandemic forced lockdowns across the U.S. in March of last year. Its cruise ships have also been suspended during that time, live sporting events have been canceled, and film and TV projects have been disrupted.

Disney said it expects coronavirus disruption to cost about $1 billion in its current fiscal year. The biggest hit to the company in the quarter that ended Jan. 2 was the closure and limited reopening of its theme parks, which cost the company about $2.6 billion.

The company based in Burbank, California, has been focusing on its steaming services — Disney+, ESPN+, and Hulu — to drive growth. Disney+ subscribers totaled 94.9 million at the end of the quarter, more than double the subscriber base a year ago, when the service had been operating for only about two months. ESPN+ subscribers jumped 83% to 12.1 million and Hulu subscribers rose 30% to 39.4 million.

For Disney's fiscal first quarter, net income totaled $17 million, or 1 cent per share, compared with $2.1 billion or $1.16 cents per share a year earlier. Excluding one-time items, net income totaled 32 cents per share, compared with $1.53 per share in the prior-year quarter.

Revenue fell 22% to $16.25 billion from $ 20.88 billion.

The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for a loss of 45 cents per share. Eleven analysts surveyed by Zacks expected revenue of $15.84 billion.

Disney's stock rose about 1.7% in after-market trading following the release of the earnings report. The shares are up 5.4% since the start of the year, compared with a 4.3% rise in the S&P 500 index.

Featured Article: How a Put Option Works



7 Penny Stocks That Don’t Care About Robinhood

By the time you read this Vladimir Tenev, the CEO of the trading app Robinhood, will be testifying in front of Congress. The company’s role in the GameStop (NYSE:GME) short squeeze will be called into question.

However, the real issue at stake is the right of traders to buy and sell the equities of their choice. In the case of Robinhood, some traders are buying a lot of penny stocks. While definitions vary, penny stocks are generally considered stocks that are trading for less than $10 per share. These stocks are largely ignored by the investment community.

One reason is that many of these stocks are cheap for a reason. For example, the company may have a business model that is out of date. In other cases, they operate in a very small, niche market that doesn’t drive a lot of revenue.

And most of these stocks are ignored by the investment community. They simply aren’t considered significant enough to spend time debating.

But some penny stocks do have the attention of Wall Street. And they’re being largely ignored by the day trading community. The focus of this special presentation is to direct you to penny stocks that have a story that the “smart money” thinks will eventually be trading at much higher prices.

And that’s why you should be looking at them now.

View the "7 Penny Stocks That Don’t Care About Robinhood".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
The Walt Disney (DIS)1.6$185.93-0.8%N/A-116.94Buy$186.79
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security. Learn more.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.