Disney Shares Tumble on Earnings Miss


Disney Shares Tumble on Earnings Miss

Disney shares slipped roughly 5% after the company printed its earnings report for the latest financial quarter. Earnings per share came in at $1.36, short of the $1.40 estimate, causing shares to drop in after-hours trading to the $100 area.

Net income came in at $2.14 billion, higher than $2.1 billion in the same period a year ago. However, revenue came in at just $12.97 billion, much lower than estimates at $13.2 billion. Stronger performance in resorts and the Star Wars franchise were not enough to make up for dismal activity in other business components.

Revenue for the media networks unit, Disney’s largest business division that runs ABC, ESPN and other TV networks, was flat at $5.8 billion. Although operating income rose 12% due to higher affiliate fees collection thru ESPN, the unit’s cable network business saw its revenue decline 2% to $4 billion.

With that, Disney shares could be in for further declines until the next support at $95 or onto the key support level at $87.50. A break below this area could complete a double top reversal pattern visible on the 4-hour and daily time frames, signaling that a longer-term selloff is in order.

On the other hand, if the $100 level holds as psychological support, Disney shares could still recover to the highs near $120. Additional revenue from the Star Wars franchise is expected to keep pouring in, as a number of films are still up for release and resorts will capitalize on Star Wars-themed sections of the parks.

“We’re very pleased with our overall results in Q2, which marks our 11th consecutive quarter of double-digit growth in adjusted EPS,” said Disney CEO and Chairman Robert Iger in a statement. “Our studio’s unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which we continue to leverage across the entire company to drive significant value.”


To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

For free forex trade signals, sign up on Trade24 here
Previous articleBTCUSD Price Technical Analysis – Bulls Ready to Charge?
Next articleDragon’s Tale – Mine Precious Stones and Get Rewarded
Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.