Wall Street analysts had expected the company to report earnings of $1.40 a share and $13.2 billion in revenue for its fiscal second quarter, according to a survey of 31 analysts by Yahoo!
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CEO Bob Iger told analysts the risks “caught up with us”.
Disney could see expansion in profit margins and more importantly, showcase an impressive lineup of releases.
Wall Street also isn’t thrilled about the company’s sudden lack of a succession plan.
But revenues from Walt Disney Co.’s closely watched cable television division fell, perturbing investors who have been anxious about the prospects for its ESPN network as the traditional cable television model comes under assault. The programming costs and advertising revenue were affected by a shift in college football playoff games moving from the second quarter last year to the first quarter this year.
Sales in the unit were $5.79 billion for the quarter, about flat from the year-earlier period and missing estimates for $5.9 billion, according to StreetAccount.
Revenue in Disney’s cable networks business fell 1.86 percent to $3.96 billion.
It also owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water parks; and other recreational facilities.
Disney has quite an impressive track record when it comes to earnings. Today, you can download 7 Best Stocks for the Next 30 Days.
Going forward, the company has quite a few things going for it. Its new movie The Jungle Book experienced huge success on its opening weekend in April, and another Star Wars movie, Rogue One: A Star Wars Story, is scheduled to be released in December and is nearly certainly going to be another huge hit. Yet through Tuesday’s closing bell, Disney’s share price has risen roughly 20% over the past three months.
Insider Activity: Insiders look pessimistic about the prospects of the company that they seem to offload shares while they are 0.25 up so far this year. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and twenty have issued a buy rating to the company’s stock. Company shares were Upgraded by Pivotal Research Group on April 18, 2016 to ” Buy”, Firm has raised the Price Target to $ 121 from a previous price target of $104.RBC Capital Mkts Initiated Walt Disney Co on April 8, 2016 to “Sector Perform”, Price Target of the shares are set at $103. ESPN should be in focus and investors must look at its subscriber numbers.
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Disney’s Studio Entertainment was up 22% to $2.06 billion.
