Disney Reports Mixed Results In Second Quarter, Slowed By Coronavirus
Disney (DIS) reported mixed results Tuesday in the company’s second fiscal quarter, with the company earning 60 cents per share on revenue of $18.01 billion. The coronavirus has closed down Disney parks and cruise businesses, but the company saw growth on all of its streaming platforms over the past quarter.
“While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” CEO Disney Bob Chapek said in a press release. “Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney Plus since its launch last November.”
Financial market data company Refinitiv had anticipated earnings of 89 cents per share on revenue of $17.8 billion. Disney claims lockdowns intended to curb the spread of the coronavirus cost the company $1.4 billion in profit.
On a positive note, Chapek said the company plans to reopen its Shanghai Disneyland park in China on May 11. Chapek said there are “encouraging signs” as China begins to reopen its economy.
Chapek became Disney's CEO in February, after Bob Iger stepped down after 15 years in the role. Chapek previously served as the company's Chairman of Parks, Experiences and Products.
Shares of Disney have plummeted amid the coronavirus crisis, trading above the $140 range in February to a low of around $85.76 in mid-March. Shares of Disney closed at $101.06 on Tuesday.
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