Disney gains 3% as streaming subs surprise despite financial miss (NYSE:DIS)

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Walt Disney (NYSE:DIS) is 3.3% higher after hours following fiscal second quarter earnings where it missed profit and sales expectations but posted better growth in Disney+ than expected.

The stock had found a new 52-week low during the regular session at $104.79, but is bouncing back in the evening trade.

For the quarter, revenue rose 23% to $19.25 billion, short of consensus for $20.04 billion.

Earnings per share nearly halved on an as-reported basis, to 26 cents a share from 50 cents a share, but excluding certain items, EPS rose to $1.08 from $0.79.

Disney+ grew faster than expected in terms of viewers, though, adding about 8 million subscribers to reach 137.7 million, above expectations for 134.4 million.

ESPN+ rose to 22.3 million subscribers (vs. 22.5 million expected) and Hulu subscribers hit 45.6 million (vs. 46.6 million forecast). Hulu Plus Live TV subs reached 4.1 million, vs. 4.4 million expected.

That means on the whole, Disney’s direct-to-consumer subs have hit 205 million, getting closer to Netflix’s 221 million.

Revenue by segment: Disney Parks, Experiences and Products, $6.7 billion (up 109.6%); Disney Media and Entertainment Distribution, $13.6 billion (up 9%).

Operating income by segment: Disney Parks, Experiences and Products, $1.76 billion (vs. prior $406 million loss); Disney Media and Entertainment Distribution, $1.94 billion (down 32%).

Conference call to come at 4:30 pm ET.

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