Why Disney Stock Is Diving Today

Walt Disney Co DIS shares are trading lower by about 8% Wednesday after the company reported fiscal fourth-quarter financial results that came in below analyst estimates. 

Disney said fiscal fourth-quarter revenue increased 9% year-over-year to $20.25 billion, which missed average analyst estimates of $21.25 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of 30 cents per share, which missed average estimates of 56 cents per share.

Disney said core Disney+ subscribers jumped 38% year-over-year in the fourth quarter.

"Our fourth quarter saw strong subscription growth with the addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers," said Bob Chapek, CEO of Disney.

"The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate."

See Also: Disney Analyst Warns Investors 'Not The Time To Panic And Sell' Stock After Q4 Miss: Here's His Thesis

Analyst Assessment: Several analysts adjusted price targets on the stock following the company's quarterly results.

• Keybanc analyst Brandon Nispel maintained Disney with an Overweight and lowered the price target from $143 to $119.
• Barclays analyst Kannan Venkateshwar maintained Disney with an Equal-Weight and lowered the price target from $105 to $98.
• Credit Suisse analyst Douglas Mitchelson maintained Disney with an Outperform and lowered the price target from $157 to $126.
• Rosenblatt analyst Barton Crockett maintained Disney with a Buy and lowered the price target from $134 to $120.

DIS Price Action: Disney shares are down 8.13% at $91.78 Wednesday morning.

Photo: StockSnap from Pixabay.