Disney Shares Jump After Positive Earnings Call

Bob Chapek Disney Shares

On August 10, The Walt Disney Company held its third-quarter earnings call. Overall, the call was very positive — with Disney announcing profits in a number of areas, especially in the theme parks. Disney also shared that it now has Disney+ operating in more than 150 markets and expects the streaming platform to see a profit by 2024. While they did say that Disneyland attendance was “unfavorable”, they were able to make up for lower attendance at other Parks with the increased spending at places like Walt Disney World. Plus, all of Disney’s theme parks are now open, which hasn’t been the case since early 2020.

Magic Kingdom

Credit: Disney

Walt Disney CEO Bob Chapek was also thrilled with the number of people who are visiting Walt Disney World Resort and Disneyland Resort and purchasing Disney Genie+ — a system that allows Guests to enter the Lightning Lane (the new name for FastPass). At Walt Disney World, the cost for Disney Genie+ is $15 per day, per person. At Disneyland Resort, Disney Genie+ costs $20 per day, per person. According to Bob Chapek, about 50% of the Guests who visit those Resorts are purchasing Disney Genie+.

Disney Genie Plus

Credit: Disney

In terms of profits, Chapek shared that the company had made about $21.5 billion in revenue, surpassing Wall Street expectations by nearly half a million dollars. Those positive earnings numbers caused Disney stock to soar in the opening hours of August 11. Walt Disney stock was up about 9% in pre-market trading and is currently up nearly 5% as the market closes.

Via Napoli Ristorante e Pizzeria

Credit: Disney

These numbers are great for Disney, as the company has been struggling in the stock market for months. Disney had a series of stumbles recently — including its public spat with Marvel star Scarlett Johansson, its late and poorly perceived response to Florida’s Parental Rights in Education bill, and its shocking firing of popular executive Peter Rice. At one point, Disney stock was sitting at $90 per share — a steep drop from the nearly $180 per share that it was at last August.

Disney stock

Credit: Google

While Disney did lower its expected subscriber number for Disney+, it will continue to increase its profits in that area because a major price increase is coming. Disney+, Hulu, and ESPN+ will all see price increases. The Disney+ price increase will begin on December 8, when Disney launches its new ad-supported tier, which will cost $7.99 per month, the current cost of the ad-free tier.

About Krysten Swensen

A born and bred New England girl living the Disney life in Southern California. I love to read, to watch The Golden Girls, and love everything to do with Disney and Universal. I also love to share daily doses of Disney on my Disney Instagram @BrazzleDazzleDisney!