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Disney's Q3 Not as Bad as Feared, Plus Activision & Beyond Meat Q2s
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Another positive close in what’s been overall a somewhat reticent bullish market off the pandemic lows a few months ago — 5 straight up days on the Nasdaq has brought it to a fresh all-time closing high to 10.941, the S&P 500 rose for the fourth straight session to 3306, and the Dow bettered either with +0.62% growth to 26,8239 on the day. For once, it wasn’t Big Tech names driving the bus, but buoying sectors like Energy.
After the closing bell, The Walt Disney Company (DIS - Free Report) released earnings for its fiscal Q3, and even with estimates slashed by analysts (Disney was a Zacks Rank #5 [Strong Sell] prior to the release) the entertainment giant came in lower than expected on the revenue side: $11.78 billion versus $12.65 billion expected. Earnings of 8 cents per share, however, easily topped the expected loss of 43 cents in the quarter, though still well off the $1.35 per share reported a year ago.
Disney+ surpassed 100 million subscribers with an additional 57.5 million added in the quarter, with Networks bringing in $6.5 billion overall. However, its Parks business, while anticipated to be down, missed expectations and came in at $983 million. Direct-to-Consumer brought in $3.79 billion, beneath the $4.6 billion estimated. All told, however, this was not the disastrous quarter some analysts were expecting, and shares have bounced up 2% in late trading. For more on DIS' earnings, click here.
Activision Blizzard posted a big beat on both top and bottom lines in its Q2 report, with earnings of 81 cents per share on $2.08 billion in sales surging past the 68 cents per share and $1.69 billion expected. The amounts to top-line growth of 70% year over year, as the video game maker has enjoyed increased demand during the shut-in aspect of the pandemic crisis.
Further, the Call of Duty and World of Warcraft creator increased guidance by 29 cents per share from the Zacks consensus for Q3 to $1.65, and by 50 cents per share for the full year to $7.63. The company has not missed on earnings since Zacks recalibrated stock-based compensation back in Q4 2016.
Beyond Meat (BYND - Free Report) also grew revenues around 70% year over year to $113.3 million in its Q2 report, ahead of the $96.95 million analysts were looking for. Earnings, however, took a hit to -16 cents per share; -$0.01 was expected, down from +$0.01 per share posted a year ago.
The company explained its product move from Food Service to Retail was the aggressive growth move, but is costing the company more in the near term. In order to compete with meat companies during the “shelter in place” period of the pandemic, Beyond Meat cut prices on its products. Shares are taking a hit in late trading, down 7%.
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Disney's Q3 Not as Bad as Feared, Plus Activision & Beyond Meat Q2s
Another positive close in what’s been overall a somewhat reticent bullish market off the pandemic lows a few months ago — 5 straight up days on the Nasdaq has brought it to a fresh all-time closing high to 10.941, the S&P 500 rose for the fourth straight session to 3306, and the Dow bettered either with +0.62% growth to 26,8239 on the day. For once, it wasn’t Big Tech names driving the bus, but buoying sectors like Energy.
After the closing bell, The Walt Disney Company (DIS - Free Report) released earnings for its fiscal Q3, and even with estimates slashed by analysts (Disney was a Zacks Rank #5 [Strong Sell] prior to the release) the entertainment giant came in lower than expected on the revenue side: $11.78 billion versus $12.65 billion expected. Earnings of 8 cents per share, however, easily topped the expected loss of 43 cents in the quarter, though still well off the $1.35 per share reported a year ago.
Disney+ surpassed 100 million subscribers with an additional 57.5 million added in the quarter, with Networks bringing in $6.5 billion overall. However, its Parks business, while anticipated to be down, missed expectations and came in at $983 million. Direct-to-Consumer brought in $3.79 billion, beneath the $4.6 billion estimated. All told, however, this was not the disastrous quarter some analysts were expecting, and shares have bounced up 2% in late trading. For more on DIS' earnings, click here.
Activision Blizzard posted a big beat on both top and bottom lines in its Q2 report, with earnings of 81 cents per share on $2.08 billion in sales surging past the 68 cents per share and $1.69 billion expected. The amounts to top-line growth of 70% year over year, as the video game maker has enjoyed increased demand during the shut-in aspect of the pandemic crisis.
Further, the Call of Duty and World of Warcraft creator increased guidance by 29 cents per share from the Zacks consensus for Q3 to $1.65, and by 50 cents per share for the full year to $7.63. The company has not missed on earnings since Zacks recalibrated stock-based compensation back in Q4 2016.
Beyond Meat (BYND - Free Report) also grew revenues around 70% year over year to $113.3 million in its Q2 report, ahead of the $96.95 million analysts were looking for. Earnings, however, took a hit to -16 cents per share; -$0.01 was expected, down from +$0.01 per share posted a year ago.
The company explained its product move from Food Service to Retail was the aggressive growth move, but is costing the company more in the near term. In order to compete with meat companies during the “shelter in place” period of the pandemic, Beyond Meat cut prices on its products. Shares are taking a hit in late trading, down 7%.
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