Disney Stock Sags After Q4 Results Miss Wall Street Forecasts

Disney missed Wall Street forecasts in its fiscal fourth quarter amid a slowdown in streaming, despite a swing back to profit from the depths of the Covid-bedeviled 2020 quarter.

The company’s stock slipped almost 5% in after-hours trading due to the report. It had fallen a fraction during the trading day to close at $174.53 and has now fallen into the red for 2021 to date. In 2020, despite the company’s theme park, movie studio and sports operations suffering major damage from Covid, the company’s shares managed a major rally.

Disney’s total revenue in the quarter ending October 2 came in at $18.5 billion. That was up 26% compared with a year ago, but below analysts’ expectations, with adjusted earnings per share of 37 cents missing by 12 cents. The company recorded a loss of 20 cents a share in the year-ago period.

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