Disney (DIS) 2021 Q2 Earnings Report in Focus

Walt Disney Co. (NYSE:DIS) is best known for providing family entertainment around the world. It was founded in 1923 by Walt Disney and his brother Roy in a small office located in Los Angeles. The two brothers initially produced a short, animated film series called Alice Comedies. Today, Disney is the top media company in the world, with a market value hovering around $340 billion.

The California-based entertainment giant recently announced better-than-expected earnings for the second quarter, but its sales fell short of estimates. Disney reported adjusted earnings of 79 cents per share for the three months ended April 3, up from 60 cents per share in the comparable period of 2020. Analysts on average were looking for earnings of 26 cents per share.

Revenue for the quarter came in at $15.61 billion, down from $18 billion in the year-ago quarter, as the Covid-19 pandemic continues to weigh on its sales, especially across its theme parks. Analysts on average were expecting Disney to report revenue of $15.86 billion.

Paid subscribers for Disney+ increased to 103.6 million in the quarter but fell short of the consensus estimate of 109 million. Looking forward, the company expects its Disney+ subscribers to grow in the range of 230 million to 260 million by 2024.

Commenting on the results, CEO Bob Chapek said in a statement, “We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company. This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”