Disney reports Q1 earnings beat

Disney reported results for Q1 on Wednesday that included an earnings and revenue beat.

Video transcript

SEANA SMITH: All right, guys. I want to jump in here with Disney results. Their earnings being released here just a moment ago. You're looking at shares up just a fraction here in extended trading. In terms of the top and bottom lines, we're seeing a beat from Disney. Revenue coming in 23.51 billion. The estimate was for 23.37 billion. So a slight beat there. Adjusted EPS of $0.99. The estimate was for $0.74. We're taking a look at its DTC business. Revenue during the quarter increasing 13% to $5.3 billion, but operating losses were coming in at $1.1 billion.

Also, Disney+ subscribers, that number missing the Street's estimates, 161.8 million. The estimate on the Street was for 164 million, so a miss there. Total Hulu subscribers, 48 million. That's also a miss, a million light. The estimate was for 49 million here. But again, the Street-- or again, shares moving slightly to the upside here after hours on the headline beats on both the top and bottom lines. Also, their parks division, revenue there, 8.74 billion.

DAVE BRIGGS: On expectations of-- do you know what those were on the parks?

SEANA SMITH: Looking here-- no, we're just looking at the 8.74 billion there on parks. But still, you've got to take into account the fact that some people might be pulling back some of their spending. That 8.74 billion number talked about how crowded those parks are. Looks like pretty strong results there for the company in that division.

DAVE BRIGGS: Yeah, it's just become the expectation, hasn't it, that the parks are going to continue to perform. I was at Disney just a couple of months ago. I can tell you, every single hotel on the property was sold out for the entire time I was there. They are strong. You have--

SEANA SMITH: Yeah, certainly, and it is a beat on the expectation there for parks. The 8.74 billion estimate was for 8.08 billion. So a beat there--

DAVE BRIGGS: Considerable beat, OK.

SEANA SMITH: --in their parks division as well. So, again, the stock slightly higher here, Pras, in after-hours trading.

PRAS SUBRAMANIAN: Yeah, I wanna say a slight miss there, I think you mentioned, Seana, in Disney+ subscribers, down about 2 million miss off there. So we heard-- or we're hearing that Iger is going to focus more about profitability as opposed to expanding growth with those Plus streaming numbers. I want to hear more color on that.

Not always a good thing when you don't hit those numbers, but if you're able to charge more for that service and grow not at the highest rate, but also just kind of increase the margin there, that's a good thing, too. Obviously, that parks number, we're all really curious about that and how that's trending. And I imagine holiday numbers were so strong. How are we going to see that trickle into 2023 is pretty big.

SEANA SMITH: Yeah, and also in this report, the company saying that it recorded charges of $69 million related to exiting our business in Russia. CEO Bob Iger in the earnings release, the statement there, we believe the work we are doing to reshape our company around creativity while reducing expenses will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders there. But again, beat on both the top and the bottom lines for Disney, although Disney+ subscribers a slight miss there by just about 2 million.

DAVE BRIGGS: Will be interesting to hear reducing expenses, what exactly does Mr. Iger mean. Will there be layoffs ahead for this--