5 Stocks that Crushed Earnings Expectations

1. The Walt Disney Company (NYSE: DIS)

Number of Hedge Fund Holders: 134

Disney (NYSE: DIS) is best known for providing family entertainment around the world. The company recently announced strong financial results for the third quarter ended July 3. Disney reported earnings of 50 cents per share, a substantial improvement from a loss of $2.61 per share in the comparable period of 2020.

On an adjusted basis, the company earned 80 cents per share, beating the consensus forecast of 55 cents per share. Revenue came in at $17.02 billion, well above $11.78 billion in the year-ago quarter. Analysts, on average, were looking for revenue of $16.8 billion.

Revenue from the Direct-to-Consumer segment jumped 57 percent to $4.3 billion. Moreover, Disney+ subscribers in the quarter rose to 116 million, ahead of the consensus forecast of 114.5 million.

Discussing Q3 results, CEO Bob Chapek said, “We ended the third quarter in a strong position, and are pleased with the Company’s trajectory as we grow our businesses amidst the ongoing challenges of the pandemic. We continue to introduce exciting new experiences at our parks and resorts worldwide, along with new guest-centric services, and our direct-to-consumer business is performing very well, with a total of nearly 174 million subscriptions across Disney+, ESPN+ and Hulu at the end of the quarter, and a host of new content coming to the platforms.”

In the Q2 2021 investor letter of RiverPark Funds, the fund mentioned The Walt Disney Company (NYSE: DIS). Here is what the fund said:

“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.

DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series…” (Click here to see the full text)

You can also take a  peek at the 10 Best Dividend Champions to Buy Now and 15 Most Valuable Weed Companies in the World.

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