Disney shares rise after company beats estimates on streaming subscribers

Shares of Disney rose 2% after the closing bell Wednesday after the company reported stronger-than-expected growth in streaming subscribers across all of its media platforms.

Here are the results.

• Earnings per share: $1.08 adj.
• Revenue: $19.25 billion, which includes a $1 billion reduction resulting from the early termination of some licensing agreements
• Disney+ total subscriptions: 137.7 million vs. 135 million expected, according to StreetAccount

The stock move comes after the company’s shares hit a 52-week low of $104.79 earlier Wednesday.

Disney reported that total Disney+ subscriptions rose to 137.7 million during the fiscal second quarter, higher than the 135 million analysts had forecast, according to StreetAccount.

“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services — with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million — once again proved that we are in a league of our own,” said CEO Bob Chapek in a statement Wednesday.

Investors were keen to see Disney’s subscription numbers after Netflix posted subscriber losses during its most recent quarter and forecast more subscriber drop-off in the future.

Shares of Disney have slumped 30% since January and more than 40% compared with the same time last year, as investors wonder if the company can sustain its streaming growth and question how increased inflation and a possible recession could impact its other business ventures.

The company showed signs of bouncing back from Covid restrictions.

Disney’s parks, experiences and products segment saw revenues more than double to $6.7 billion during the quarter, compared to the prior-year period. The company said growth was fueled by increased attendance, hotel bookings and cruise ship sailings as well as higher ticket prices and higher spend on food, beverage and merchandise.

Disney said its domestic parks are beginning to see the return from international travelers, but not at the levels the company saw before the pandemic. This group of visitors once accounted for 18% to 20% of guests.

Additionally, not all of its international parks have been open full-time during the last quarter. While Paris Disneyland is celebrating its 30th anniversary, Shanghai Disneyland closed its gates temporarily due to local Covid spikes.

This is a breaking news story. Please check back for updates.