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The Walt Disney Company (DIS) topped first quarter earnings expectations Wednesday morning, reporting revenue of $24.70 billion versus an estimated $24.57 billion. Adjusted earnings per share (EPS) reached $1.76, surpassing the expected $1.45. However, Disney+ streaming service lost 700,000 subscribers during the quarter.
Needham & Company senior media and internet analyst Laura Martin joins "Market Domination" hosts Julie Hyman and Josh Lipton to analyze the results.
Martin explains that Disney+ subscriber losses and projected declines for the next quarter are pressuring the stock. The company's decision to raise monthly subscription prices has contributed to this trend as well, as doing so "always hurts your subscriber growth."
On a positive note, Martin highlights that Disney's linear TV business is no longer a "negative pull on the revenue line," though it merely "offsets" streaming weakness. She predicts this balance will become "less important every quarter" as Disney's streaming business continues to evolve.
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Addressing competition from Netflix (NFLX) and others, Martin emphasizes Disney's "efficient" business model, which leverages success across multiple channels — from films to parks to streaming and TV.
As Martin puts it, "Disney continues to have four or five windows of ways to make money."
To watch more expert insights and analysis on the latest market action, check out more "Market Domination" here.
This post was written by Angel Smith