Disney surpassed analysts’ expectations for its fiscal second quarter 2019.
The company reported adjusted earnings of $1.61 per share, compared to $1.58 per share expected by analysts (according to Refinitiv survey). However, the EPS is -13% lower from the year-ago quarter.
Revenue of $14.92 billion also came in higher than analysts’ estimates of $14.36 billion (based on Refinitiv). Revenue grew +3% year-over-year.
Disney completed its $71 billion acquisition of 21st Century Fox's entertainment assets during the second quarter. Its books included $373 million in revenue and $25 million in operating income from 11 days' ownership of Fox assets.
Disney's direct-to-consumer segment surged +15% from the same quarter of prior year. But investments into ESPN+, the upcoming Disney+ streaming platform, and consolidation of Hulu led to worsening operating losses for Disney, as indicated by the company.
Disney's new release, "Avengers: Endgame" has come out as a blockbuster hit, registering $2 billion in ticket sales in 11 days – which will be reflected in the company's next quarterly report.