Disney beats earnings estimates and almost wipes out streaming losses as Bob Iger's turnaround plan pays off
- Disney posted better-than-expected earnings on Tuesday.
- The entertainment giant beat Wall Street forecasts for the fourth consecutive quarter.
- Disney expects its streaming business to turn a profit for the first time later this year.
The Walt Disney Company posted better-than-expected quarterly earnings on Tuesday as losses in the entertainment giant's streaming division tumbled
Disney's earnings per share of $1.21 for the three months to March 31 beat the $1.10 figure analysts were predicting, per data from Refinitiv, while its revenue of $22.08 billion fell narrowly short of Wall Street's forecasts.
However, the stock fell about 5% before Tuesday's opening bell despite the better-than-expected earnings.
Disney expects its streaming business to turn a profit for the first time in the fourth quarter. Losses narrowed to just $18 million, down from $659 million this time last year. Meanwhile, profits climbed 12% in the parks division.
It's the fourth consecutive quarter that Disney has beaten earnings estimates, in a sign that CEO Bob Iger's turnaround plan is working after a long proxy battle against activist investor Nelson Peltz.
"Our results were driven in large part by our Experiences segment as well as our streaming business," Iger said in a statement. "Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4."