Forex Marketz Daily Forex News – Fully Markets Update
Overnight, Walt Disney (NYSE: DIS) posted quarterly earnings that narrowly beat out Street estimates. However, revenue missed the mark as their international theme parks slowed in revenue growth.
The media and entertainment conglomerate posted earnings of $1.45 per share on $13.1 billion in revenue. These numbers were up, respectively, 13 and 5 percent on the year. Share of Walt Disney, initially fell two percent in extended trading and then another four percent after Walt Disney executives reigned in expectations for table subscribers. Consumers are moving away from traditional cable packages and that is hurting their bottom line.
Wall Street expected earnings of $1.42 per share and $13.23 billion of revenue.
Sales in Disney’s media networks, which is its biggest division and includes ABC and ESPN rose five percent annually to $5.7 billion. In a statement, Chief Executive Officer (CEO) Bob Iger sees more impending losses on the “continued development” of television alternatives. However, the strength in the company’s other segments, including ESPN’s subscription package could help offset those losses.
Disney Studio entertainment revenue climbed nicely. This jumped 13 percent to $2.04 billion boosted by blockbusters like “Avengers: Age of Ultron.” This unit will also get even bigger returns from the reboot of the Star Wars franchise later in the calendar year.
There is softness in revenues and uncertainty in global economies, like Europe and China as well as in the Forex markets, but everything is performing well right now for Disney. In Q4 2015, when Star Wars opens up it should blow the top off of records in the box office. This will unleash other merchandising aspects as well.
The company’s revenue growth in their international parks and resorts was sluggish. Held down but operating costs and low attendance in Hong Kong. As of right now, there is no idea how a volatile US Dollar and Forex markets effected this unit. At least nothing was mentioned in the press release from yesterday.
Revenue, in this unit was up only four percent for the year at $4.1 billion as parks in the United States saw good attendance growth. Their international parks slowed the unit down.
By the close of business yesterday, on the exchange, shares of Disney were up 30 percent year to date. The stock has been boosted by not only Star Wars but the upcoming “Frozen” movie. This makes Disney the out performer on the DJIA, which is down two percent year to date.
