Disney+ Subscribers Soar Past Estimates

Walt Disney (NYSE:DIS) posted better-than-expected fiscal first-quarter results after market close on Tuesday. Revenue and adjusted earnings per share notably beat expectations for the period as CEO Robert Iger said in the company's earnings release that it was a "strong first quarter," that surprised almost everybody.

But perhaps the biggest takeaway from the report was the company's blowout results from its new streaming-TV service, Disney+.

26.5 million subscribers

Disney+ "has exceeded even our greatest expectations," said Iger in the quarterly update. "Thanks to our incredible collection of brands, outstanding content from our creative engines and state-of-the-art technology, we believe our direct-to-consumer services, including Disney+, ESPN+ and Hulu, position us well for continued growth in today's dynamic media environment."

The entertainment company ended the period with 26.5 million subscribers for Disney+, which launched in November -- midway into the company's fiscal first quarter. Analysts, on average, were expecting the streaming service to garner 25 million subscribers.

A day after the service's launch in November, Disney had already gained 10 million signups. While subscriber growth has slowed since the initial launch, it's still growing at an impressive rate.

The company also notably said Disney+ subscribers are already bringing in an average of $5.56 in revenue each -- higher than $4.44 per subscriber for ESPN+.

This article originally appeared in the Motley Fool.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short April 2020 $135 calls on Walt Disney. The Motley Fool has a disclosure policy.