Disney reported mixed results for its Q2 2020 earnings after the bell on Tuesday. The stock was up about 1% after hours on the report. The coronavirus pandemic has disrupted Disney’s theme parks and cruise businesses but boosted engagement on its newly-launched streaming service, Disney+.
Here’s what Disney reported:
- Earnings per share (EPS): 60 cents, ex-items
- Revenue: $18.01 billion
Wall Street had been anticipating earnings per share of 89 cents on revenue of $17.80 billion, based on Refinitiv consensus estimates. However, it’s difficult to compare reported earnings to analyst estimates for Disney’s second quarter, as the pandemic continues to hit global economies and makes earnings impact difficult to assess.
This is the first earnings report with Bob Chapek at the helm of Disney, after former CEO Bob Iger announced in February he would transition to the role of executive chairman. Iger had been expected to retire at the end of 2021, but told investors he decided to step down to focus on creative projects now that major undertakings like the Fox merger and launch of Disney+ were behind him.
The impact of the pandemic was especially pronounced in its Parks, Experiences and Products segment. Disney estimated the impact on its operating income for that segment was about $1 billion mostly due to revenue lost because of closures. The company reported a 58% drop in operating income for the segment this quarter compared to the same period last year.
Here’s how Disney’s segments performed in the quarter in terms of revenue compared to the same quarter last year:
- Media Networks: $7.26 billion, up 28%
- Parks, Experiences and Products: $5.54 billion, down 10%
- Studio Entertainment: $2.54 billion, up 18%
- Direct-to-Consumer and International: $4.12 billion, up more than 100%
