Disney stock pops after hours on earnings, Disney+ subscribers #NewsUnitedStates

Yahoo Finance’s Allie Canal breaks down the latest quarterly earnings for Disney.

Video Transcript

DAVE BRIGGS: Disney earnings are out, and you can see the stock is popping. Our Allie Canal has taken a look. She has revealed. Allie, what are we seeing?

ALEXANDRA CANAL: Yeah, this is a pretty positive quarter for Disney, especially since it beat on those net subscriber additions. We know that Netflix was not able to do that. And you can see right now the stock popping over 5% in afterhours trading after these results, despite the fact that Disney missed on both the top and bottom lines, revenue coming in at $19.25 billion versus estimates of just over $20 billion. Adjusted earnings per share also missing, but that Disney+ subscriber number really fueling the rally that we’re seeing afterhours. Net additions for the quarter came in at 7.9 million versus the 4.5 million that was expected.

So, you know, I’m a bit surprised by this. Analysts were cautiously optimistic about Disney+ after we saw Netflix lose subscribers for the first time in a decade. But here we have Disney bucking that trend. I’m sure in the earnings call, there’s going to be a lot of conversations about the future of streaming. Disney has committed $11 billion this year to fuel a lot of that streaming content.

I’m sure CEO Bob Chapek will also have to address some of the controversy surrounding the company and the battle with Florida Governor Ron DeSantis, the dissolution of Reedy Creek, which is that special tax district. But for now, it looks like investors are happy with this news. Stock currently up in afterhours over 5%.

SEANA SMITH: Yeah, jump here after hours. Allie, that total subscriptions across all DTC offerings exceeding $205 million for the company. Also their parks, experiences, and products revenue coming in at $6.7 billion, an important number to watch. The estimate on the Street was for $6.1 billion.