- Disney posted a strong fiscal fourth-quarter performance that topped analyst estimates.
- The media titan also announced it struck a key partnership with Amazon for its Disney+ streaming service.
- Analysts are busy buying call options and going long on DIS.
While Disney (NYSE:DIS) has been pulling back from the all-time high of $147.15, the company has been busy making money and building key relationships. On Thursday, the entertainment conglomerate announced a strong fiscal fourth-quarter.
The media giant reported earnings per share (EPS) of $1.07 to exceed analyst estimates of $0.95 EPS. In addition, Disney printed revenue of $19.1 billion, topping Wall Street expectations of $19.05 billion.
Our solid results in the fourth quarter reflect the ongoing strength of our brands and businesses.
Mati Greenspan, market analyst at eToro, sees that Disney’s diversity is one of the company’s strengths. When asked if the stock would rise due to a strong Q4 performance, he replied,
[It] could. They’re a large company and are involved in a lot of different businesses.
Leading Disney’s various business segments is the box office. Yahoo! reported that the Studio Entertainment segment revenue increased by 52% to $3.3 billion. On top of that, the company’s Media Networks segment surged 22% to the tune of $6.5 billion.
However, the Direct-to-Consumer and International segment, which includes Disney+, suffered operating losses of $740 million. That number is lower than estimates of $811.1 million.
The good news is that Disney’s distribution deal with Amazon can help narrow the losses of the Direct-to-Consumer and International segment.
Deal with Amazon: Fire TV to Carry Disney+
The media giant is busy finding opportunities to get a leg up in the crowded space of on-demand video streaming.