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Why Disney Stock Soared Today

By Neil Rozenbaum – Aug 13, 2021 at 11:00AM

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Disney has come out of this pandemic stronger than ever, and there are no signs of slowing down.

In this video I will go over Disney's recent Q3 results as well as a couple of announcements that management made during the earnings call. Disney is one of the stocks I will be holding forever. You can find the video below. 

Earnings highlights

Disney reported Q3 revenue of $17 billion, up 45% year over year, and earnings per share of $0.80, beating estimates of $0.55. Disney's revenue sources are divided into two streams. Media and entertainment distribution came in at $12.68 billion, up 18% year over year, and parks, experiences and products came in at $4.34 billion, up over 100% YOY. 

Disney+ reached a record 116 million paid subscribers, up over 100% YOY. ESPN+ and Hulu grew their subscriber bases 75% and 21% respectively. In total, Disney's streaming services now have 173 million subscribers.

Announcements

Disney announced a Disney+ Day on November 12. CEO Bob Chapek said, "November 12 will be Disney+ Day, which will be an unprecedented cross-promotional campaign." Management also said that churn rates for Disney+ are declining and retention is very healthy, and it said that Disney will be implementing new guest services technology, including the "Disney Genie," "Magic Key," and more. This will help visitors get the most out of their experiences. 

The company also expects both dividends and share repurchases to return in the future, "but not until we have returned to a more normalized operating environment." 

For the full insights do watch the video below.

*Stock prices used were the closing prices of August 12, 2021. The video was published on August 13, 2021.

Neil Rozenbaum owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Walt Disney Stock Quote
Walt Disney
DIS
$93.38 (0.90%) $0.83

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

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