Disney (DIS) Crushes, Snap (SNAP) Surprises

The Walt Disney Co. DIS vastly outperformed expectations for its fiscal Q1 2019 top and bottom lines after the closing bell Tuesday, with earnings of $1.84 per share beating the $1.57 in the Zacks consensus and sales of $15.30 billion surpassing the $15.18 billion we had been looking for. This is the fourth earnings beat in the last five quarters for the entertainment conglomerate. Shares were up 2% immediately upon the earnings release.

Some of the company's strength came from more unexpected areas in the quarter, including Media Networks (including ESPN) up 7%, and Parks +10% year over year in operating income. Increased ad revenues assisted Disney in the quarter, which carried a Zacks Rank #3 (Hold) rating ahead of the announcement. For more on DIS' earnings, click here.

One nice surprise this afternoon came from Snap Inc. SNAP which posted a lower-than-expected loss for its Q4 bottom line at -4 cents per share, on revenues of $390 million that beat the $375 million estimated. Average Revenue per User (ARPU) went to $2.09 versus the expected $2.05, and Daily Active Users stayed steady at 186 million as opposed to falling, as the analysts had expected. Shares have shot up 15% in late trading following the results. For more on SNAP's earnings, click here.

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