The Walt Disney Co. handily beat Wall Street estimates on earnings and revenue for the fiscal first quarter, and its stock jumped about 10 percent in after-hours trading.
The Burbank entertainment and media giant on Wednesday reported adjusted net income of $2.7 billion ($1.06 a share) for the quarter ending Jan. 1, more than tripling adjusted net income of $776 million (32 cents) in the same period a year earlier. Revenue increased 34 percent to $21.8 billion.
Analysts on average expected earnings of 61 cents on revenue of $18.4 billion, according to Thomson Financial Network.
Bob Chapek, the chief executive of the company, called the first quarter earnings a strong start to the fiscal year with a significant increase in earnings and the addition of 11.8 million Disney+ streaming service subscribers during the quarter.
“This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years,” Chapek said in a statement.
The jump in Disney+ subscribers was seen as a plus for the company. Domestically, the increase went from 36.3 million as of the first quarter of last fiscal year to 42.9 million for the first quarter of this fiscal year. The average monthly rate paid by domestic subscribers went up by 15 percent to $6.68.
“The increases in costs and subscribers reflected growth in existing markets and to a lesser extent, expansion to new markets,” Disney said in a release.
Disney Parks, Experiences and Products revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter, according to the company’s release.
Operating income for the quarter was $2.5 billion compared to a loss of $100 million in the same period a year earlier.
Operating income for the quarter reflected increases at the parks and experiences businesses, partially offset by a decrease at the consumer products business, Disney said in its release.
Shares in Disney (DIS) closed up $4.75, or just more than 3 percent, to $147.23 on the New York Stock Exchange, on a day when the Dow Jones industrial average closed up nearly 0.9 percent. Disney’s earnings were reported after the market closed. The stock surged in after-hours trading, at one point selling for about $157, up about 10 percent for the day.