Disney jumps after reporting strong quarterly earnings

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Shares of Disney rose 2.32% after the company reported earnings that beat Wall Street expectations.

The company reported an adjusted earnings of $US1.89 per share, beating expectations of $US1.61, and revenue of $US15.35 billion, falling short of an expected $US15.44 billion.

Out of 27 analysts polled by Bloomberg, 15 analysts rated Disney a “Buy,” 10 analysts said it was a “Hold,” and only two analysts rated the company a “Sell.”

Wall Street has been optimistic about Disney’s move to compete with Netflix by offering a video streaming service at a lower cost. Disney said in December that it plans to buy 21st Century Fox‘s film and TV assets for $US52.4 billion, which is subject to regulatory approval. A few months earlier, Disney bought the video-streaming company, BAMTech for $US1.58 billion.

Disney’s stock was trading at $US107.13 per share, and it was down 6.66% for the year.

Here are the important figures from the earnings report:

Earnings Per Share: $US1.89 vs. an expected $US1.61

Revenue: $US15.35 billion vs. an expected $US15.44 billion

Operating Profit: $US900 million, vs. an expected $US699 million

Read more about how millennials were trading Disney stock ahead of its earnings.

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