The Walt Disney Co. reported strong earnings and revenue for its fiscal second quarter, sending the stock price up by more than 10% the day earnings were reported.
The Burbank entertainment and media giant reported on May 7 adjusted net income of $2.8 billion ($1.45 a share) for the quarter ending March 29, compared to adjusted net income of $2.5 billion ($1.21 a share) in the same period of the previous year. Revenue increased by 7% from the second quarter of the prior year to $23.6 billion.
Analysts surveyed by Zacks Investment Research expected earnings of $1.18 on revenue of $23.1 billion.
Disney’s share price jumped by more than 10% to close at $102.09 following the earnings news.
Bob Iger, Disney’s chief executive, said the company’s performance during the second quarter underscores its continued success building for growth and executing across its strategic priorities.
“Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new (direct-to-consumer) offering, and an unprecedented number of expansion projects underway in our Experiences segment,” Iger said in a statement. “Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
Summer movies, expanded experiences
Disney kicked off the summer movie season this month with its newest Marvel superheroes film, “Thunderbolts*.” Its roster for the year includes the live action “Lilo & Stitch,” “Elio” from Pixar, Marvel’s “The Fantastic Four: First Steps,” “Freakier Friday,” “Zootopia 2” and the second “Avatar” sequel from James Cameron, titled “Avatar: Fire & Ash.”
Disney is also spending $60 billion on its parks, experiences and products division over the next decade. Iger alluded to some of the company’s projects – an expanded Avengers campus at Disneyland, a new “Cars” inspired land at Disney World in Orlando, Florida and the “Monsters Inc.” land coming to Disney’s Hollywood Studios in Orlando. The Tropical Americas land at Disney’s Animal Kingdom, which includes attractions inspired by “Encanto” and “Indiana Jones” films, is also on the company’s roster of experiences.
New theme park
Disney also announced on May 7 it had struck an agreement to build a new theme park on Yas Island in Abu Dhabi, United Arab Emirates with Miral Group, the leading creator of immersive destinations and experiences in Abu Dhabi.
Miral will develop, build and operate the new resort, with Disney and its Imagineering division in Glendale providing creative design and operational oversight.
“This is a thrilling moment for our company as we announce plans to build an exciting Disney theme park resort in Abu Dhabi, whose culture is rich with an appreciation of the arts and creativity,” Iger said in a statement. “As our seventh theme park destination, it will rise from this land in spectacular fashion, blending contemporary architecture with cutting edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways.”
