Disney Disappoints
Naeem Aslam | Nov 09, 2022 10:39
Disney (NYSE:DIS) reported that its profit and major revenue divisions for the fiscal fourth quarter fell short of projections. The company also cautioned that the high growth in streaming for its Disney+ platform might slow down going forward.
After-hours the stock dropped by around 8%.
The disappointment was due to the underperformance of the company's parks and media divisions. Christine McCarthy, the Chief Financial Officer, has forecasted revenue growth of less than 10% for the current fiscal year, which she has used to set realistic expectations for investors. The corporation reported a 22% increase in sales for the fiscal year 2022.
According to Wall Street estimation, Disney+ brought in an additional 12.1 million subscribers over time, bringing the total number of subscribers for the platform to 164.2 million. This figure exceeds the 160.45 million subscribers that industry experts had anticipated.
On Tuesday's conference call, officials from Disney cautioned that the company's growth might decelerate in the first quarter of the current fiscal year.
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