Disney Gains in Pre-Market Trading As Rosy Outlook Overshadows Falling Profit
Shares of The Walt Disney Co. added 1.83% in the extended-trading hours on Thursday, as Chief Executive Robert Iger managed to rally hopes after the company announced disappointing earnings and revenue.
The media conglomerate reported net income of $1.77 billion, or $1.10 a share, on sales of $13.1 billion for the last quarter with cable networks’ operating income dropping $207 million year-over-year to $1.4 billion.
ESPN, the company’s sports-programming network contributed the largest part to the big earnings miss, as it was hit by lower advertising and affiliate revenue, not to mention higher costs for production and for rights to live sports broadcasts.
However Chief Executive Iger’s rosy outlook reassured investors. in Thursday’s conference call, Iger said that “To some extent, the causes of (subscriber) losses have abated,”, while added that Disney could reach the subscribers ESPN has lost through so-called skinny bundles as it has signed on to approaching efforts of smaller, internet-delivered programming bundles from Hulu and AT&T’s DirectTV.
Buy Stop at 97.00, take profit at 99.00, stop loss at 96.00