Disney (DIS) unveiled first quarter 2022 results that beat expectations after the bell on Wednesday. Shares jumped as much as 9% after the report.
New membership additions for the company’s two-year-old Disney+ streaming service surpassed analysts’ expectations. The metric was in focus as a return to in-person activities had some concerned over future growth for the direct-to-consumer video service, which benefitted from the height of stay-at-home orders during the COVID-19 pandemic.
Turnout at Disney’s lucrative parks and resorts also climbed, with revenue from the entertainment giant’s parks, experience and products business hitting $7.23 billion, more than double from a year before.
Here are the main metrics in Disney’s report compared to Bloomberg consensus estimates:
- Revenue: $21.82 billion vs. $20.8 billion expected
- Adjusted earnings per share: $1.06 vs. 61 cents expected
Disney+ new subscribers totaled 11.8 million, sharply topping analyst estimates. According to Bloomberg consensus data, Disney was expected to see Disney+ streaming subscribers grow by about 7 million on a quarter-over-quarter basis, a jump from 2.1 million new members brought on in the prior quarter.
The company had 129.8 million paid subscribers at the end of 2021 and reiterated its target to bring on 230 million and 260 million subscribers in total to the service by the end of fiscal 2024.
Many stock-watchers worried about whether the all-important facet of Disney’s business can continue to churn out a profit as swaths of subscribers who signed up for Disney+ during lockdowns go back to regular routines, but analysts anticipated the lineup of new video content would help boost subscriber numbers.