Disappointing Earnings Announcement from Disney

Disney misses Analyst expectations

The Walt Disney Company (NYSE: DIS) reported its earnings for the third quarter of 2024 last week, and the results were disappointing for investors despite the decent profit numbers. The company posted its first-ever streaming profit, but this was offset by a decline in its theme park and television businesses. As a result, Disney's stock price fell by over 2% in after-hours trading.

Streaming revenue up

Disney's streaming business continues to grow, with revenue up 4% year-over-year to $23.2 billion. The company's streaming services, which include Disney+, Hulu, and ESPN+, now have a combined total of over 235 million subscribers. This growth is being driven by the popularity of Disney's original content, such as "The Mandalorian" and "WandaVision".

Theme park revenue down

Disney's theme park revenue declined by 3% year-over-year to $16.4 billion. This decline was due to a number of factors, including the COVID-19 pandemic, which resulted in the closure of Disney's theme parks for several months. The company is also facing competition from other theme park operators, such as Universal Studios and Six Flags.

Television revenue down

Disney's television revenue declined by 14% year-over-year to $5.4 billion. This decline was due to a number of factors, including the loss of ESPN subscribers and the decline in advertising revenue. The company is also facing competition from other streaming services, such as Netflix and Amazon Prime Video.

Outlook

Disney's outlook for the future is mixed. The company expects its streaming business to continue to grow, but it is also facing a number of challenges in its theme park and television businesses. The company is also facing increasing competition from other streaming services and theme park operators.

Conclusion

Disney's earnings announcement last week was disappointing for investors, but the company's long-term prospects remain bright. The company's streaming business is growing rapidly, and the company has a number of popular franchises that it can leverage to drive growth in its other businesses. However, the company is facing a number of challenges, and it is unclear how it will overcome these challenges and return to growth.