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Disney (DIS) Shares Down on Top-Line Miss; WYNN and TTD Beat
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Markets could not hang onto pre-market gains, slight though they were, in a bid to make back what the major indices lost yesterday. It was not to be; the indices all closed on a downward trajectory near session lows. The Dow, which had spent a moment or two in the green today, finished -184 points, -0.52%. The S&P 500 slid -0.70% on the day. The small-cap Russell 2000 came in -0.87% lower, while the Nasdaq took up the rear, -161 points, -1.16%.
Despite a new ESPN gaming deal reported this morning, which looks designed to put the company in play with the online gaming industry, The Walt Disney Company (DIS - Free Report) reported fiscal Q3 results after today’s close that were mixed. Earnings of $1.03 per share outpaced the 99 cents expected in the Zacks consensus (though still down from $1.09 per share reported in the year-ago quarter), but revenues of $22.33 billion were short of the $22.44 billion expected, marking the second revenue miss in the past three quarters.
Disney+ subscribers came in beneath expectations — 146.1 million versus 151.0 million estimate — while its Parks, Experiences and Products segment revealed weaker attendance in June and July. Disney’s linear TV division slipped -7% in revenues and -27% in operating income. CEO Bob Iger, who is quoted on the press release expressing he is “incredibly confident in the long-term trajectory of the company.” But from these segment numbers, he’s clearly still got a lot of work ahead of him.
The online gaming deal sees Penn Entertainment (PENN - Free Report) paying Disney $1.5 billion in cash, plus $500 million in warrants to buy PENN shares, to launch a betting sportsbook called ESPN BET. Due to ESPN’s ubiquity in the domestic sports market — even though the segment has tended to be an albatross for Disney overall — we expect this move to challenge for market share in the online gambling space. In late trading, Disney shares are -2% at this hour, and -1.6% year to date.
Wynn Resorts (WYNN - Free Report) put up very strong quarterly numbers this afternoon, as Q2 earnings of 91 cents per share blew past the 51 cents expected, and in another orbit from the -82 cents per share reported in the year-ago quarter. Revenues were similarly impressive: $1.60 billion outperformed the $1.49 billion in the Zacks consensus. In fact, it was a record quarter for the international gaming giant, with big improvements recorded not only for Macau (as expected), but for Las Vegas and Boston, as well. Shares are up only marginally on this news, and +18% year to date.
Zacks Rank #1 (Strong Buy)-rated The Trade Desk (TTD - Free Report) also outpaced expectations in its Q2 release after today’s close, with earnings of 28 cents per share beating estimates by 2 cents, on $464 million in quarterly sales topping the $455.2 million anticipated, +23% year over year. Guidance was slightly higher for the current quarter, as well, though shares of the marketing tech company initially dropped -6% on the news. They have since ebbed somewhat, but remain in negative territory in the after-market.
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Disney (DIS) Shares Down on Top-Line Miss; WYNN and TTD Beat
Markets could not hang onto pre-market gains, slight though they were, in a bid to make back what the major indices lost yesterday. It was not to be; the indices all closed on a downward trajectory near session lows. The Dow, which had spent a moment or two in the green today, finished -184 points, -0.52%. The S&P 500 slid -0.70% on the day. The small-cap Russell 2000 came in -0.87% lower, while the Nasdaq took up the rear, -161 points, -1.16%.
Despite a new ESPN gaming deal reported this morning, which looks designed to put the company in play with the online gaming industry, The Walt Disney Company (DIS - Free Report) reported fiscal Q3 results after today’s close that were mixed. Earnings of $1.03 per share outpaced the 99 cents expected in the Zacks consensus (though still down from $1.09 per share reported in the year-ago quarter), but revenues of $22.33 billion were short of the $22.44 billion expected, marking the second revenue miss in the past three quarters.
Disney+ subscribers came in beneath expectations — 146.1 million versus 151.0 million estimate — while its Parks, Experiences and Products segment revealed weaker attendance in June and July. Disney’s linear TV division slipped -7% in revenues and -27% in operating income. CEO Bob Iger, who is quoted on the press release expressing he is “incredibly confident in the long-term trajectory of the company.” But from these segment numbers, he’s clearly still got a lot of work ahead of him.
The online gaming deal sees Penn Entertainment (PENN - Free Report) paying Disney $1.5 billion in cash, plus $500 million in warrants to buy PENN shares, to launch a betting sportsbook called ESPN BET. Due to ESPN’s ubiquity in the domestic sports market — even though the segment has tended to be an albatross for Disney overall — we expect this move to challenge for market share in the online gambling space. In late trading, Disney shares are -2% at this hour, and -1.6% year to date.
Wynn Resorts (WYNN - Free Report) put up very strong quarterly numbers this afternoon, as Q2 earnings of 91 cents per share blew past the 51 cents expected, and in another orbit from the -82 cents per share reported in the year-ago quarter. Revenues were similarly impressive: $1.60 billion outperformed the $1.49 billion in the Zacks consensus. In fact, it was a record quarter for the international gaming giant, with big improvements recorded not only for Macau (as expected), but for Las Vegas and Boston, as well. Shares are up only marginally on this news, and +18% year to date.
Zacks Rank #1 (Strong Buy)-rated The Trade Desk (TTD - Free Report) also outpaced expectations in its Q2 release after today’s close, with earnings of 28 cents per share beating estimates by 2 cents, on $464 million in quarterly sales topping the $455.2 million anticipated, +23% year over year. Guidance was slightly higher for the current quarter, as well, though shares of the marketing tech company initially dropped -6% on the news. They have since ebbed somewhat, but remain in negative territory in the after-market.
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