The Walt Disney Company (NYSE: DIS) reported a 66% dip in earnings for the fourth quarter of 2019 due to higher costs and expenses. However, the results exceeded analysts’ expectations.
Net income from continuing operations plunged by 66% to $785 million or $0.43 per share. Adjusted earnings dropped by 28% to $1.07 per share, but exceeded the analysts’ expectations of $0.95 per share.
The business segments contributed positively to the top line, which had risen by 34% for the quarter to $19.1 billion. This came ahead of the consensus estimates of $19.04 billion.
Media Networks revenues rose 22%. Parks, Experiences & Products recorded an 8% increase, while Studio Entertainment revenues rose by 52%.
Disney has been riding on the performance of The Lion King, Toy Story 4 and Aladdin in the current quarter compared to Incredibles 2 and Ant-Man And The Wasp in the prior-year quarter.
Disney experienced a decrease at ESPN. This was due to increases in NFL, college sports and MLB programming, production and marketing costs. This was partially offset by higher affiliate revenue, which was due to an increase in contractual rates and the launch of the ACC Network.
Mickey and Minnie were turning to be the least favorite among children as the merchandise sales were lower than that based on Frozen and Toy Story, which has risen from the previous year. Disneyland Resort showed growth as increases in average ticket prices and higher food, beverage and merchandise spending drove guest spending higher.
The company experienced an increase in operating loss at Direct-to-Consumer & International due to the consolidation of Hulu, costs associated with the upcoming launch of Disney+ and our ongoing investment in ESPN+, which was launched in April 2018.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,