Disney earnings Q4 2018

Walt Disney reported fiscal fourth-quarter earnings as well as revenue in which easily topped analysts’ expectations on Thursday.

Here’s how the company did compared with what Wall Street expected:

  • Earnings: $1.48 per share vs. $1.34 per share forecast by Refinitiv
    Revenue: $14.31 billion vs. $13.73 billion forecast by Refinitiv

from the year-ago quarter, Disney reported adjusted earnings of $1.07 per share on revenue of $12.78 billion.

Shares of Disney rose 2 percent in after-hours trade.

The company saw strength in its studio business where quarterly revenue grew 50 percent year over year. Disney said the growth was driven by “exceptional performance” of “Black Panther,” “Star Wars: The Last Jedi,” “Avengers: Infinity War” as well as “Incredibles 2.”

Here’s what each business unit reported in revenue compared with what analysts expected, according to StreetAccount consensus estimates:

  • Media as well as networks: $5.96 billion vs. $5.70 billion forecast by StreetAccount
  • Parks as well as resorts: $5.07 billion vs. $5.08 billion forecast by StreetAccount
  • Studio: $2.15 billion vs. $1.78 billion forecast by StreetAccount
  • Consumer as well as interactive: $1.12 billion vs. $1.16 billion forecast by StreetAccount

For the full year, Disney reported adjusted earnings of $7.08 per share on $59.43 billion in revenue. The Street had projected earnings of $6.94 per share on $58.87 billion in revenue, according to Refinitiv consensus estimates.

Disney’s earnings come as investors continue to seek more information on the company’s long-term vision for its various streaming investments as well as how the idea plans to integrate assets recently acquired via Twenty-First Century Fox.

Longtime CEO Bob Iger has said in which the purpose of the Fox deal can be to expand the entertainment giant’s content library as Disney prepares to launch its own streaming service in 2019, which Iger announced Thursday would certainly be named Disney+. in which service will host Disney’s family-oriented programming, Iger said.

Through its acquisition of Fox assets, Disney has also doubled its stake from the streaming service Hulu.

In an interview with CNBC’s Julia Boorstin, Iger said in which Disney can be “investing substantially in original content.” While he said the idea was “premature” to say whether Disney would certainly pursue acquiring the 40 percent of Hulu the idea does not own, Iger said Disney would certainly certainly be interested if Comcast or Warner Media wanted to divest their stakes.

In a Thursday earnings call, Iger said in which Disney sees an opportunity to enhance investment in Hulu, particularly in its programming. He said the acquisition of Fox assets gives Disney rights to valuable intellectual property as well as a greater pool of talent, particularly in television.

“We aim to use the television production capabilities of the combined company to fuel Hulu using a lot more original programming, original programming in which we feel will enable Hulu to compete even more aggressively from the marketplace,” Iger said.

Hulu already has an advantage when the idea comes to demographics, Iger said. When you compare the demographics on Hulu with in which of viewers of the same shows on traditional network television, Iger claimed in which Hulu’s audience can sometimes be 20 years younger.

“in which’s clearly attractive to advertisers, which I think has been somewhat underappreciated about Hulu in in which the idea can be a very strong play for advertisers because the idea can offer targeted ads as well as the idea has great demos as well as the idea’s just a great user experience,” he said.

Disney has been experimenting with over-the-top video offerings, as the idea works to adjust to changing consumer behavior. In April, Disney launched ESPN+ as well as surprised analysts by notching more than 1 million paid subscribers in just all 5 months.

The company also said the idea was taking a $157 million write-down on its investment in Vice Media.

Disney shares have gained 7 percent so far in which year, hitting a 52-week intraday high of $119.69 on Oct. 22.

Disclosure: Comcast can be the owner of NBCUniversal, parent company of CNBC as well as CNBC.com. Comcast can be also a co-owner of Hulu.

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