Disney's Q3 Earnings: Revenue And EPS Beat, Streaming Business Turns Profitable, Strong ESPN Revenue Boost EPS, ESPN, ESPN+, Disney, Outlook, Earnings, Q3 revenue, Stock price, Other revenue, Profitability, Operating income, Analyst consensus, Streaming business, Direct-to-Consumer, International sales, Entertainment segment, Content Sales/Licensing, U.S. parks and experiences by https://www.benzinga.com/
AI Insights:
Simple Explanation:
Disney is a big company that makes movies, TV shows, and theme parks. They had a good three months, making more money than people thought they would. They also made money from their new streaming service, Disney+, for the first time. They expect to make even more money in the future. The people who own a part of Disney (stocks) are happy because the stocks are worth more now. Read from source...
Critical Perspective:
1. The headline and the lead paragraph are misleading. The headline suggests that Disney's streaming business turned profitable, but the article states that it was the combined streaming business (Disney+, Hulu, and ESPN+) that turned a profit, not just Disney+. The lead paragraph also implies that the streaming business was the main driver of the revenue growth, but the article states that Entertainment, ESPN, and Experiences were also significant contributors.
2. The article fails to mention that the revenue growth of 4% was below the analyst consensus estimate of $23.11 billion, which is a negative point for the company.
3. The article does not provide any analysis or context for the increase in ESPN revenue. It simply states that ESPN's domestic and international business saw a 5% revenue increase, driven by a rise in domestic advertising and subscription revenue. However, it does not explain why this increase occurred or how it compares to previous quarters or industry trends.
4. The article mentions that Disney expects a higher adjusted EPS growth target for fiscal 2024, but it does not explain why the company raised its guidance or what factors are contributing to this increase. It also does not provide any comparison to the consensus estimate of $4.77 per share.
5. The article ends with a plug for Benzinga's services, which is irrelevant to the main topic of the article and appears to be an attempt to generate revenue from the reader.
Final words: The article is poorly written and lacks critical analysis, context, and objectivity. It seems to be more of a press release than a genuine news article.
Sentiment Analysis:
Neutral
Article's Topic: Earnings