What happened
Walt Disney (DIS -0.55%) reported its fiscal third-quarter earnings this week, and investors were pleasantly surprised by several items of note. The result has been a jump in the stock, moving shares up about 13% for the week as of midday Friday, according to data provided by S&P Global Market Intelligence. That has brought gains in Disney over the last month to nearly 30%.
So what
Many Disney watchers have been focused on what the company would say about its Disney+ streaming service. Those subscriptions grew more than expected, but that wasn't all that pushed investors into buying the stock. The company's theme park segment saw revenue soar 70% year over year in its third quarter. Overall revenue grew 26% year over year in the quarter and 28% over the last nine months.
Now what
On the company's conference call with investors, CEO Bob Chapek called the performance of its domestic theme parks "outstanding." Internationally, Disney's parks are all now open, so there could be more promising results to come for investors.
Many investors were more focused on the streaming services, especially after some other providers like Netflix have seen growth declining. But Disney added more than 14 million subscribers just for its Disney+ offering since the previous quarter. That brings Disney's total paid subscribers to over 221 million including ESPN+ and Hulu services. That's now more than Netflix reported as of June 30.
Disney still reported a loss from its streaming segment, but that wasn't unexpected. The company estimates it will turn profitable by late 2024. Investors were cheering the subscriber growth, though. That, along with the overall results, helped push the stock up by double digits this week.
