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Disney (DIS), Expedia (EXPE) Report; Brighter Days Ahead for Both
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Market indexes continue not to swim too far out from shore yet again this trading day. Again we saw mixed results at the close, with the Dow down just 0.02%, the Nasdaq up 0.38%, the S&P 500 +0.17% and the small-cap Russell 2000 — by far the most volatile — -0.82%. Investors await new marching orders in terms of whether to put in higher highs prior to a final stimulus package passing through Congress, and no other news items have quite stepped up to have an influence either way.
However, earnings season marches on. The Walt Disney Company (DIS - Free Report) released fiscal Q1 earnings results after the closing bell, and, much like we saw from another pandemic-leveled company yesterday, Uber (UBER - Free Report) , the good news is the company is weathering the storm. A big swing to positive from an expected significant loss per share takes the top headline: +32 cents per share was way out in from of the -45 cents expected in the Zacks consensus. Revenues of $16.25 billion likewise got a big leg up on the $15.84 billion expected.
Keeping Disney afloat — especially as its Parks & Experiences and Media & Entertainment Distribution businesses continue to slog through late-term pandemic conditions that continue hampering revenue streams — is the company’s Disney+ streaming service, which is now up to 94.9 million subscribers, while ESPN+ is up to 12.1 million. In total, Direct-to-Consumer (DTC) subscribers reached 146 million overall. Not bad for a business that didn’t even exist not too long ago.
Based on pandemic-related issues, Parks & Experiences dropped 53% on the quarter, while Media & Entertainment Distribution was down 5%. However, the way ahead looks much more hopeful, whenever our economic activity can approach something like “normal” again; pent-up demand for Disney parks and films will likely provide a big boost to the entertainment giant’s top line, even at the expense of slower growth in streaming. But Disney has gotten through the worst of it, and shares are up 2% in late trading. For more on DIS' earnings, click here.
Expedia (EXPE - Free Report) , another company simply awash in pent-up demand until the floodgates one day get released, missed expectations on both top and bottom lines in its Q4 report, also released after regular Thursday trading closed: -$2.64 per share was a big drop from the estimated -$1.85 per share, which itself was about 250% lower than the year-ago quarterly earnings. Sales also disappointed, reaching $920 million, well short of the $1.11 billion in the Zacks consensus.
Until most Americans can once again feel safe to travel, Expedia’s numbers are going to take a hit. Gross bookings were down 67% in the quarter, though this is no shock to anyone. The company saw modest improvements over the holidays, but this is likely short-lived. That said, shares of Expedia have remained somewhat lofty, likely as investors calculate booking will skyrocket once conditions for travel improve back to “regular” levels. Shares are up modestly late, and +35% year over year. For more on EXPE's earnings, click here.
Image: Shutterstock
Disney (DIS), Expedia (EXPE) Report; Brighter Days Ahead for Both
Market indexes continue not to swim too far out from shore yet again this trading day. Again we saw mixed results at the close, with the Dow down just 0.02%, the Nasdaq up 0.38%, the S&P 500 +0.17% and the small-cap Russell 2000 — by far the most volatile — -0.82%. Investors await new marching orders in terms of whether to put in higher highs prior to a final stimulus package passing through Congress, and no other news items have quite stepped up to have an influence either way.
However, earnings season marches on. The Walt Disney Company (DIS - Free Report) released fiscal Q1 earnings results after the closing bell, and, much like we saw from another pandemic-leveled company yesterday, Uber (UBER - Free Report) , the good news is the company is weathering the storm. A big swing to positive from an expected significant loss per share takes the top headline: +32 cents per share was way out in from of the -45 cents expected in the Zacks consensus. Revenues of $16.25 billion likewise got a big leg up on the $15.84 billion expected.
Keeping Disney afloat — especially as its Parks & Experiences and Media & Entertainment Distribution businesses continue to slog through late-term pandemic conditions that continue hampering revenue streams — is the company’s Disney+ streaming service, which is now up to 94.9 million subscribers, while ESPN+ is up to 12.1 million. In total, Direct-to-Consumer (DTC) subscribers reached 146 million overall. Not bad for a business that didn’t even exist not too long ago.
Based on pandemic-related issues, Parks & Experiences dropped 53% on the quarter, while Media & Entertainment Distribution was down 5%. However, the way ahead looks much more hopeful, whenever our economic activity can approach something like “normal” again; pent-up demand for Disney parks and films will likely provide a big boost to the entertainment giant’s top line, even at the expense of slower growth in streaming. But Disney has gotten through the worst of it, and shares are up 2% in late trading. For more on DIS' earnings, click here.
Expedia (EXPE - Free Report) , another company simply awash in pent-up demand until the floodgates one day get released, missed expectations on both top and bottom lines in its Q4 report, also released after regular Thursday trading closed: -$2.64 per share was a big drop from the estimated -$1.85 per share, which itself was about 250% lower than the year-ago quarterly earnings. Sales also disappointed, reaching $920 million, well short of the $1.11 billion in the Zacks consensus.
Until most Americans can once again feel safe to travel, Expedia’s numbers are going to take a hit. Gross bookings were down 67% in the quarter, though this is no shock to anyone. The company saw modest improvements over the holidays, but this is likely short-lived. That said, shares of Expedia have remained somewhat lofty, likely as investors calculate booking will skyrocket once conditions for travel improve back to “regular” levels. Shares are up modestly late, and +35% year over year. For more on EXPE's earnings, click here.
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