Refinitiv data shows that Disney’s profits per share for the three months ended March 31 came in at $1.21, above the $1.10 analysts were projecting. However, the company’s sales of $22.08 billion came in just shy of Wall Street’s estimates.
The stock did, however, drop almost 5% before to Tuesday’s opening bell, even though the results were better than anticipated.
Disney anticipates that in the fourth quarter, its streaming division will make a profit for the first time. From $659 million at this time last year, losses dropped to only $18 million. In the meanwhile, the parks segment saw a 12% increase in earnings.
Disney has surpassed profit projections for the fourth quarter in a row, indicating that CEO Bob Iger’s turnaround strategy is succeeding during a protracted proxy fight with activist investor Nelson Peltz.
“Our streaming business and Experiences segment played a major role in driving our results,” Iger said in a statement. “Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.”