Back to top

Image: Bigstock

Disney Beats Q3 Estimates, Shares +5%

Read MoreHide Full Article

New highs greet the closing bell on the Dow and S&P 500 today, with the Dow barely skidding into the green, +0.04%, to a hair beneath 35,500, and the S&P bringing in +0.29% gains on the day. The Nasdaq also improved on the day, +0.35%, to close within a few dozen points of its all-time closing high posted a week ago. The small-cap Russell 2000 was the only major index to close in the red, -0.28% on the day.

The Walt Disney Company (DIS - Free Report) sees its share price climbing more than 5% this afternoon on its fiscal Q3 earnings report after the bell: earnings of 80 cents per share trounced the 57 cents in the Zacks consensus, not to mention the 8 cents per share reported in the year-ago quarter. Revenues of $17.02 billion also topped expectations of $16.82 billion in the quarter, up more than 40% year over year.

Paid subscriptions for Disney+ is the main metric analysts were looking at this quarter, and results did not disappoint: 160 million in the quarter easily surpassed the 114 million expected. This puts Disney in more direct competition with Netflix’s (NFLX - Free Report) core business, and at this trajectory, it appears the Disney segment has a chance to catch up in the foreseeable future.

The company did mention that Film and TV production disruptions continue, largely due to lingering pandemic effects, but considering how much better off this segment is from any time in the past year and a half, we look at this note as a mere disclaimer. Parks also performed well relative to expectations for its fiscal Q3. Shares had been flat year to date, so the after-market buying on earnings news puts the stock back in positive territory.

DoorDash (DASH - Free Report) also posted Q2 figures after Thursday’s close, with mixed results on top and bottom lines: a miss of 10 cents per share to a loss of 30 cents greeted analysts, but the $1.24 billion in quarterly sales was a positive bit of news, improving over the $1.10 billion in the Zacks consensus estimate and growing 83% year over year. The bottom-line miss was largely to do with one-time items concerning stock-based compensation.

The company’s Gross Order Volume (GOV) increased 70% in the quarter, to $10.5 billion — better than analysts were expecting. However, compared to the previous quarter’s +200% GOV, we do see some moderation on the food delivery front as the Great Reopening brought more potential customers out of doors during the quarter. Full-year guidance for both GOV ($39-40.5 billion) and adjusted EBITDA ($113 million), while better than expected, have not helped stocks from selling off 5% in the late session.

A new Import Price Index and a University of Michigan Consumer Sentiment print await investors Friday morning. Stocks are in the green for the week thus far on the Dow and S&P; the Nasdaq hopes for another strong day to close out the trading week to finish in positive territory. The Russell 2000 is slightly lower at the end of Thursday trading for the week, as well.

Questions or comments about this article and/or its author? Click here>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The full Ahead Of Wall Street article

Netflix, Inc. (NFLX) - free report >>

The Walt Disney Company (DIS) - free report >>

DoorDash, Inc. (DASH) - free report >>

Published in