Disney Stock Down 2% on Continued Theme Park Uncertainty

Revenues from theme parks and related products fell 53% to $3.6 billion, but Disney+ growth is a bright spot.
CapitalWatch StaffFeb 12,2021,19:39

Shares in Walt Disney Co. (NYSE: DIS) dipped 2% Friday to $187.40 apiece on the latest financial results.

The company reported significant growth of Disney+, its streaming service, but the losses at its theme parks left investors and analysts uncertain of its quick rebound. The stock in Disney is up $10 year-to-date and has recovered significantly from its 2020 bottom of $79.07 per share, but how long is the wait before revenues turn to growth?

The Walt Disney Company reported on Thursday evening revenue of $16.3 billion, down 22% for the fiscal first quarter ended Jan. 2, 2021. Surprisingly, it booked a profit of 2 cents per share for the quarter, with total segment operating income at $1.3 billion, down 67% year-over-year.

Revenues at theme parks and related products fell 53% to $3.6 billion, as many of them had been closed or operating at reduced capacity. Cruise ships and guided tours were suspended. The media and entertainment distribution segments were impacted less, according to the report.

Bad as it was, the company posted numbers that beat expectations. Analysts expect Disney to post a loss of 45 cents a share as compared to an EPS of $1.53 in the previous year, according to Zacks Investment Research.

Direct-to-consumer revenue, including Disney+ and other streaming services, jumped 73% to $3.5 billion while operating losses narrowed to $466 million from $1.1 billion.

Disney+ subscribers climbed to 94.9 million as of Jan. 2, up 9% since Dec. 2 and up more than 258% from last year.