Disney shares surged 7% in after-hours trading Wednesday after the company reported fiscal second-quarter revenue that exceeded Wall Street estimates, marking the first earnings release under new CEO Josh D’Amaro. The media and entertainment giant benefited from strong performance in its streaming division and theme parks segment. Streaming losses narrowed more than expected as the company raised prices and added subscribers, while parks revenue continued to recover, driven by higher attendance and guest spending. Adjusted earnings per share came in at $1.08, beating the consensus estimate of $0.99. Revenue rose 13% year over year to $22.1 billion, topping the $21.8 billion forecast. The results provided a vote of confidence in D’Amaro’s leadership as he takes the helm amid ongoing challenges in the traditional TV business and a competitive streaming landscape.
Market Outlook
Disney appears poised to extend its gains in the near term as the streaming segment’s improving profitability and resilient parks business bolster investor sentiment. However, the stock may face resistance if broader market volatility persists or if subscriber growth slows. A cautious bullish stance is warranted given the solid earnings beat and positive forward guidance.
Source: CNBC Business
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