Walt Disney Co. reported a sharp jump in sales for the July quarter as more visitors went to its parks and its Disney+ streaming service added more subscribers than expected.
The company posted fiscal third-quarter sales of $17 billion, up 45% from the year-ago quarter, when the pandemic locked down much of the world, but below the $20.2 billion posted in the 2019 third quarter. Analysts polled by FactSet expected sales of $16.76 billion.
Disney+ subscribers reached 116 million, up from 103.6 million as of April 3. Analysts had expected 115.2 million subscribers, according to FactSet. Investors are watching how streaming services grow as the economy reopens and people leave the house more.
Shares of Disney closed at $179.29 on Thursday and rose 5% in after-hours trading following the release of the results.
Disney’s share price often reflects the momentum seen in the streaming service. The stock rose steadily from its early pandemic low as Disney+ added subscribers, including when the total hit 100 million after just 16 months. Then the second-quarter earnings report in May showed about 6 million fewer new subscribers than analysts had expected, and the stock fell.
