Disney (NYSE:DIS) stock is falling on Wednesday after the entertainment company released earnings results for its fiscal fourth quarter of 2022.
The bad news for DIS stock starts with its adjusted earnings per share of 30 cents for the quarter. That’s a miss next to Wall Street’s estimate of 56 cents for the period. It’s also a drop from the 37 cents reported in the fiscal fourth quarter of 2021.
Adding to that is Disney’s revenue of $20.15 billion. That’s another miss when compared to analysts’ revenue estimate of $21.43 billion. Even if it’s a 9% increase year-over-year from $18.53 billion.
To go along with this, Disney warns that Disney+ won’t be profitable for a while longer. According to CEO Bob Chapek, the streaming service won’t return a profit for the company until fiscal 2024.
More Trouble Could Be Coming
The earnings call covering these latest results includes a warning from Disney CFO Christine McCarthy. That includes concerns that consumer spending may decrease as the U.S. continues to deal with rising inflation.
According to McCarthy, Disney already has plans to combat this with discounts. However, the executive notes that these won’t be as deep as they were during the 2009 recession.
DIS stock is seeing heavy trading today with some 16 million shares on the move. That’s already above its daily average trading volume of about 10.8 million shares.
DIS stock is down 11.2% as of Wednesday morning and is down 43.1% since the start of the year.
Investors looking for more recent stock market news will want to keep reading!
InvestorPlace is home to all of the latest stock market coverage for Wednesday! That includes the biggest pre-market stock movers from this morning, as well as the latest on Robinhood (NASDAQ:HOOD), and a crypto crash. You can check out all of this news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
