Big news from The Walt Disney Company (NYSE: DIS) this August has captivated fans and investors alike! The excitement kicked off with their much-awaited earnings release on Aug. 7, and the buzz continued with new announcements during the annual D23 fan event. Among the highlights: Disney has not only exceeded earnings expectations but has also managed to turn a profit in its streaming services for the first time—an impressive feat!
Given such encouraging growth, Disney’s executives are brimming with confidence about the future. They have unveiled plans to invest a mighty $5 billion over the next five years in the United Kingdom and continental Europe. This colossal investment aims to produce captivating movies and TV shows for both the big screen and Disney+ streaming platform. This decision comes on the heels of two box office juggernauts, making Disney the sole company to rake in $1 billion in ticket sales twice this year.
One of these blockbusters, Deadpool & Wolverine, debuted on July 26 and seemingly revived vigor into Disney’s Marvel Cinematic Universe. Globally, it earned a staggering $1 billion, second only to Disney’s Inside Out 2 for the year. Jan Koeppen, Disney’s president for Europe, the Middle East, and Africa, expressed buoyant optimism, stating that the Marvel franchise is still bursting with potential. And it doesn’t end there—Disney’s streaming service, Disney+, hit profitability a quarter earlier than anticipated, marking another milestone in the company’s ambitious digital journey.
Moreover, Disney recently disclosed their third-quarter earnings, revealing a 4% year-over-year revenue increase, and earnings per share (EPS) of $1.39, smashing estimates by $0.20. The company also announced a slight price hike for its streaming service starting mid-October, which will likely bolster their revenues even further. This upward trend showcases Disney’s outstanding strategy and commitment to diversifying its entertainment empire.
All these developments signal that Disney has regained its stride, making it a savvy time for potential investors to jump in while the stock is still trading at a relatively low value compared to its historic averages.
But don’t take just our word for it! Explore more about these exciting updates and let us know your thoughts in the comments below.
Source: Dani Cook, The Motley Fool
