Please ensure Javascript is enabled for purposes of website accessibility

What Happened in the Stock Market Today

By Jim Crumly - Aug 8, 2018 at 5:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On a day the major benchmarks were mostly unchanged, Disney reported an earnings disappointment and 3D Systems announced strong printer sales.

Stocks mostly moved sideways Wednesday, with the Dow Jones Industrial Average (^DJI -0.14%) and the S&P 500 (^GSPC -1.19%) ending the session with small losses.

Today's stock market

Index Percentage Change Point Change
Dow (0.18%) (45.16)
S&P 500 (0.03%) (0.75)

Data source: Yahoo! Finance.

The price of crude oil fell more than 3%, dragging down the energy sector; the SPDR S&P Oil & Gas Exploration & Production ETF (XOP -0.62%) fell 1.6%. Banks had a good day, with the SPDR S&P Regional Banking ETF (KRE -1.15%) closing up 0.8%. 

As for individual stocks, Walt Disney (DIS -4.54%) reported an earnings disappointment and briefed analysts on its streaming plans, while 3D Systems (DDD -2.63%) soared on higher printer sales.

Collage of stock prices and graphs.

Image source: Getty Images.

Disney looks to the future

Disney reported second-quarter earnings that were below expectations, but took the opportunity to share more of its vision for its streaming service, emphasizing the role that will be played by the assets it is acquiring from Twenty-First Century Fox (FOX) (FOXA). Revenue grew 7% to $15.23 billion and earnings per share, adjusted for a one-time benefit from the new tax law, jumped 18.4% to $1.87. Analysts were expecting adjusted EPS of $1.95, and shares slumped 2.2%.

From a segment revenue perspective, media networks grew 5% to $6.2 billion, parks and resorts was up 6% to $5.2 billion, studio entertainment revenue jumped 20% to $2.9 billion, but consumer products and interactive media fell 8% to $1.0 billion. 

In the conference call, Disney said it is on track for a late-2019 launch of its streaming service, and is investing in numerous projects to create content for it, including a live-action Star Wars series. The company is also creating new Marvel-based content, with the Fox deal giving it access to X-Men, The Fantastic Four, and Deadpool when the deal completes. Disney also plans to invest to expand National Geographic and FX to support its direct-to-consumer offerings.

Disney will likely have three streaming services by the end of next year: ESPN Plus, Hulu, and a family-oriented Disney service. With a strong offering from its studios in 2019, including Captain Marvel, Dumbo, Avengers, Aladdin, Toy Story 4, The Lion King, Artemis Fowl, Jungle Cruise, Frozen 2, and Star Wars: Episode IX, the company should have plenty of premium content in the pipeline to support pricing of the service.

3D Systems reports strong printer sales

3D Systems blew away analyst expectations with its second-quarter results, and shares skyrocketed 32.4%. Revenue grew 10.7% to $176.6 million, above the $165.9 million consensus forecast, and the company lost $0.08 on a GAAP basis. Non-GAAP earnings per share came in at $0.06, while Wall Street was expecting only $0.01.

Product revenue increased 13.5% to $110.8 million and services revenue was up 6.3% to $65.8 million. Printer revenue, part of the product category, increased 41% on 37% higher unit sales. Materials, which are consumed in the company's razor-and-blades model, had a 3% sales gain to $45.0 million. Healthcare solutions, a segment that spans both product and service categories, grew revenue by 26% to $61.4 million. Gross margin declined to 48.8% from 50.6% in the period a year earlier.

"We are pleased with our results for the second quarter, which were driven by strong revenue growth, including growth in both printer revenue and units as we continue to improve execution and are seeing the early returns on our investments in both innovation and go-to-market," CEO Vyomesh Joshi said in the press release.

Investors were pleased with the top-line printer growth for the rebounding company, especially since the numbers don't include revenue from new products that it is launching and that could provide an even bigger boost in the next few quarters.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$101.02 (-4.54%) $-4.81
3D Systems Corporation Stock Quote
3D Systems Corporation
DDD
$9.98 (-2.63%) $0.27
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$31,837.00 (-0.14%) $-43.24
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$3,926.58 (-1.19%) $-47.17
Twenty-First Century Fox, Inc. Stock Quote
Twenty-First Century Fox, Inc.
FOX
SPDR Series Trust - SPDR S&P Oil & Gas Exploration & Production ETF Stock Quote
SPDR Series Trust - SPDR S&P Oil & Gas Exploration & Production ETF
XOP
$141.51 (-0.62%) $0.88
Twenty-First Century Fox, Inc. Stock Quote
Twenty-First Century Fox, Inc.
FOXA
SPDR Series Trust - SPDR S&P Regional Banking ETF Stock Quote
SPDR Series Trust - SPDR S&P Regional Banking ETF
KRE
$60.74 (-1.15%) $0.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.