Despite a Strong Earnings Report, Disney’s Stock Falls

The Walt Disney Company held its first quarter earnings call today, and the results were overwhelmingly positive.

Once again, Disney managed to beat Wall Street expectations, delivering more revenue and higher earnings per share than anticipated. Additionally, each of the company’s core divisions increased its revenue.

Photo: Deadline

Buoyed by the historic success of Moana 2, Disney Entertainment posted immaculate results that helped lift the entire company. Disney Experiences, meanwhile, managed to weather two hurricanes and the launch of a new ship to deliver a solid quarter. Even the much-maligned ESPN did well.

Disney’s Stock Falls

Despite the plethora of good news that CEO Bob Iger and CFO Hugh Johnston had to share, it looks like Wall Street was not overly impressed.

Disney’s stock fell today despite the company’s strong earnings report. Photo: Google

When the closing bell rang on the stock market today, Disney ended the day down $2.76 (2.44%). After hours, the stock has fallen another .23%.

The Long-Term Prognosis Still Looks Good

While the dip will likely not matter to Disney in the long run (the stock is still up almost 26% over the last six months), it is strange that the company did not get a better bounce off of its strong earnings. Many investors, however, prefer to hold a company leading up to earnings, not after.

Nevertheless, if Disney can continue to produce results like it did today, the stock will be in good shape, and investors will be happy.

The Walt Disney Company. Photo: Disney

As always, be sure to check back with MickeyBlog. We will continue to update you on all the news coming out of The Walt Disney Company. 

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