Disney posts strong streaming subscribers despite financial miss (updated)

Updated 5:05 p.m.: After an initial 3% move higher, Walt Disney (NYSE:DIS) shares turned slightly lower in after-hours trading following fiscal second-quarter earnings where the company missed profit and sales expectations, but posted better-than-expected growth from its Disney+ streaming service.

The stock had fallen to a new 52-week low of $104.79 a share during the regular market session, but is bounced back in after-hours trading action.

For the quarter, Disney (DIS) said revenue rose 23% from a year ago, to $19.25 billion. However, that total fell short of analysts’ consensus estimates of $20.04 billion in sales.

Earnings, excluding one-time items, rose to $1.08 a share, from 79 cents a share a year ago. Net earnings fell to 26 cents a share from 50 cents a share in the first quarter of 2021.

Disney+ grew faster than expected in terms of viewers, though, adding about 8 million subscribers to reach 137.7 million, above expectations for 134.4 million.

ESPN+ rose to 22.3 million subscribers, compared to expectations of 22.5 million subscribers, while Hulu subscribers hit 45.6 million, or 1 million shy of forecasts. Hulu Plus Live TV reported 4.1 million subscribers compared to expectations of 4.4 million subscribers.

Altogether, Disney (DIS) streaming services now have a total of 205 direct-to-consumer subscribers, bringing it closer to Netflix’s 221 million.

Revenue from Disney Parks, Experiences and Products rose 109.6%, to $6.7 billion, Disney Media and Entertainment Distribution revenue reached $13.6 billion, up 9% from a year ago.

With regards to operating income, Disney Parks, Experiences and Products had a profit of $1.76 billion, compared to a year-ago loss of $406 million loss. Disney Media and Entertainment Distribution saw it operating profit fall 32%, to $1.94 billion, down 32% from a year ago.

Conference call to come at 4:30 p.m. ET.