Are you interested in the Disney stock or the Netflix stock? If so, today’s news is definitely something you’re going to want to hear. On Tuesday, after the closing bell, the Walt Disney Company (NYSE:$DIS) reported earnings that surpassed expectations, but missed revenue forecasts.
Despite missing revenue estimates, investors were more shocked to hear that the Burbank, California-based company has decided to no longer stream its movies on Netflix (NASDAQ:$NFLX) starting in two years time. Instead, the company plans to launch a direct-to-consumer streaming service in 2019, and it will be here that Disney will host its films exclusively.
With that being said, Marvel fans can relax, as CEO Bob Iger told CNBC that Marvel-related shows will stay on Netflix.
Let’s take a look at how Disney did compared to what the Street expected:
- Adjusted Earnings Per Share: $1.58 versus $1.55 expected, according to Thomson Reuters.
- Revenue: $14.24 billion versus $14.42 billion expected, according to Thomson Reuters.
In the report, Disney announced that its cable networks division saw operating income fall 23% year over year amongst trouble over at ESPN. To date, the sports network has struggled with higher programming costs and lower advertising revenue. Not to mention severance and contract termination expenses.
Since June, Disney has been fighting against an independent report that stated that a majority of the company’s theme parks witnessed year-over-year declines in attendance while seeing higher prices. Instead, Disney decided to focus its current investments in its parks, in the hopes that they will “deliver magical experiences that exceed our guests’ expectations.”
Moving forward, let’s examine what Disney reported as operating income for each division, compared to what analysts’ had forecast, according to StreetAccount estimates:
- Consumer and interactive: $362 million versus $394.6 million forecast
- Parks and resorts: $1.17 billion versus $1.09 billion forecast
- Studio: $639 million versus $636.6 million forecast
- Parks and resorts: $1.17 billion versus $1.09 billion forecast
Featured Image: twitter
