Disney share prices fell on Tuesday following the release of the media titan's quarterly earnings report. The company's stocks were trading more than 2.5 percent up in the afternoon but fell sharply during after-hours trading.
According to the report, earnings per share fell from $1.87 from the third quarter of last year to $1.35, while analysts had expected a much lighter tumble to $1.75. Revenues also underperformed, reaching just $20.25 billion instead of the $21.47 billion anticipated by analysts.
The earnings report comes amid major shifts in Disney's business. This is the first quarter that takes into account the company's acquisition of 21st Century Fox, which was completed in late March. It also comes as Disney ($DIS) ramps up for the launch of Disney+, a streaming network that's meant to compete with Netflix.
Disney's studio entertainment — which handles its blockbuster films like "Aladdin" and "Avengers: Endgame" — saw its income grow to $3.8 billion this quarter.
While the company's direct-to-consumer business also surged, Disney attributed its operating losses to increased investment into ESPN+, a live sports streaming service, and the launch of the Disney streaming network, among other factors.
The company is hoping that latter platform will create a new revenue stream for its widely-popular franchises.
"This year, with the strongest year in the box office, in the company's history, I think that is by design," Andrew Freedman, managing director at Hedgeye Risk Management, told Cheddar. "All these big movies that are getting released are going to be used to drive acquisition for their Disney+ service next year."
He added that his company has maintained its expectation that Disney will reach 20 million subscribers in its first 12 months.
Disney also reported that its parks and experiences revenues grew by 7 percent, to $6.6 billion, but that area of its business does have vulnerabilities.
"We've been in this rip-roaring bull market for 10 years," said Freedman. "Make no mistake, Disney is consumer-mediated. It's a cyclical company. The theme parks have been driving a lot of the operating business and a lot of the upside for them. So to any extent you see a weakness in the consumer, it's going to hurt Disney."
Joseph Pallant, Founder and Executive Director for the Blockchain for Climate Foundation, joins Cheddar Climate, where he discusses the among of energy crypto mining consumes and explains how his organization is on a mission to make the crypto industry more environmentally sustainable.
One of the world's largest transport companies is kicking off Black History Month with a new initiative aimed at the next generation of business leaders. Today, FedEx announced the launch of its Student Ambassador Program. Participants selected from eight historically black colleges and universities will receive career guidance from FedEx executives. The program is part of FedEx's ongoing commitment to HBCUs and will also help the company expand its pipeline for diverse talent. Cheddar News welcomes senior vice president at FedEx, Jenny Robertson, and Jerryl Briggs, President of Mississippi Valley State University, to discuss.
Driver assistance monitoring systems are meant to keep the driver's eyes on the road, but according to a report from AAA, different ways of monitoring provide significantly different results. The study found that direct camera-based systems that scanned the driver's eye movements were faster and more reliable than those indirect systems that looked at steering-wheel input. Megan McKernan, the manager of automotive services for the Automobile Club of Southern California, joined Cheddar to discuss the findings. "Triple-A is recommending that automakers include both direct and indirect systems just to really prevent consumers from trying to misuse these systems," she said, noting that neither system on its own is not foolproof.
"Sing 2" has overthrown "Spider-Man: No Way Home" as the number one film at the UK box office. The animated sequel brought in $8.1 million, in just its two first weekends. However, "No Way Home" is still on track to beat "Avatar" as the number one grossing movie of all time.
Pinterest recently added augmented reality to its portfolio. The image sharing and social media platform's new e-commerce tech will allow consumers to interact with retailers and visualize online products inside their homes.
On this episode of Cheddar Reveals, Jim Riordan, Director of the MBA Sport Management program at Florida Atlantic University, breaks down the successes, failures, and chaos of the first seven months of the Name, Image, Likeness policy in college athletics; Adi Kunalic, President of Opendorse, discusses the first-ever association-wide deal in college athletics between Opendorse and the NAIA, and how Opendorse is marketing and educating student-athletes to make the most of their NIL deal potential; Cheddar gets a look at Curiosity Stream's 'Predicting a Pro'.
Jim Riordan, Director of the MBA Sport Management program at Florida Atlantic University, joins Cheddar Reveals to break down the successes, failures, and chaos of the first seven months of the Name, Image, Likeness policy in college athletics.
Adi Kunalic, President of Opendorse, joins Cheddar Reveals to discuss the first-ever association-wide deal in college athletics between Opendorse and the NAIA, and how Opendorse is marketing and educating student-athletes to make the most of their NIL deal potential.
Jason Chinnock, CEO of Ducati North America, discusses ways demand has changed over the last year and what supplying race bikes for the MotoE World Cup series means for Ducati's future.
