HomeFinancial MarketsDisney Stock Climbs Amid Lower Capital Spending Forecast

Disney Stock Climbs Amid Lower Capital Spending Forecast

Entertainment giant Walt Disney Company shared its second-quarter earnings on Wednesday, missing estimates on revenue and Disney+ subscribers. However, the company’s stock still made gains in the after-hours trading on the back of a lower capital spending forecast.

Disney reported revenue of $22.33 billion compared to $22.51 billion expected. Its Disney Parks, Experiences, and Products arm narrowly beat the analyst’s predictions with $8.33 billion versus $8.25 billion estimated revenue, but Disney Media and Entertainment Distribution division fell short of 14.36 billion expected. Adjusted earnings per share came at $1.03 versus $0.99 expected.

Disney+ streaming services saw a 7.4% decline compared to the first quarter and now have 146.1 million total subscribers. The analysts expected fewer losses and estimated the streamer would finish Q2 with 154.8 million subscribers.

However, Disney managed to encourage investors by forecasting capital spending of $5 billion, which represents a dip of $1 billion compared to the $6 billion forecast in Q1. The company also announced its intention to start paying dividends again by the end of this year.

Disney’s shares closed at $87.49 on Wednesday, which represents a 1.66% year-to-date loss. The stock climbed as high as $91.98 per share in after-hours trading.

“Our results this quarter are reflective of what we’ve accomplished through the unprecedented transformation we’re undertaking at Disney to restructure the company, improve efficiencies, and restore creativity to the center of our business,” said CEO Bob Iger in a statement.

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