Disney (DIS) blew away earnings expectations with a Thursday report, but shares still fell in late trading as the pandemic-fueled growth of its streaming services slowed down.
On Thursday, the company posted fiscal second-quarter earnings of $901 million, or 49 cents per share, on revenue of $15.61 billion, a decrease from $18 billion the previous year. After adjusting for restructuring charges and other factors, the corporation reported profit of 79 cents per share, an unexpected increase from 60 cents per share the previous year.
According to FactSet, analysts predicted adjusted earnings per share of 26 cents on revenue of $15.86 billion. Despite this, Disney stock slid around 4% in after-hours trading after the data were released, after closing with a 0.3 percent rise at $178.37, as streaming users and revenue came in lower than expected.
This will be the final quarter in which Disney will have to compare earnings to those that were mostly untouched by COVID-19, which has damaged several of Disney’s main industries, such as theme parks and movies. The one bright spot for Disney throughout the epidemic has been its young streaming service, Disney+, which has surpassed 100 million users owing to rapid growth during the epidemic.