- Disney results in focus
- Palantir's lower forecasts lift the company's shares by nearly 10%
The Wall Street indices started Tuesday's trading session slightly higher. At this point, the S&P500 is gaining 0.24%, the Nasdaq is adding 0.15% and the Russell 2000 is adding 0.06%. Investor attention today turns to Disney's quarterly results, which you can read more about here. The macro calendar for today's session is relatively empty.
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Open real account TRY DEMO Download mobile app Download mobile appTrading chart of the US100 index, H4 interval. The benchmark is approaching the resistance zone set by the upper limit of the downward channel initiated in March this year. The most important support zone at this point remains the 200-period exponential moving average (gold curve on the chart). Source: xStation
News
Disney (DIS.US) released a decent earnings report for the last quarter today, but it fell short of analysts' high expectations. The company's shares lost nearly 5% at the start of the session on Wall Street. The market may have been spooked by data on the slightly lower number of Dinsey+ subscribers than expected.
Selected results presented by the company:
- Adjusted EPS $1.21 vs. $0.93 y/y, $1.12 expected
- Number of Disney+ subscribers 153.6 million, expected 155.66 million
- Revenue $22.08 billion, +1.2% y/y, expected $22.1 billion
- Revenue from Entertainment division $9.80 billion, expected $10.31 billion
- Direct sales revenue $5.64 billion, expected $5.64 billion
- Revenues from Sports $4.31 billion, expected $4.33 billion
- Experiences revenue $8.39 billion, expected $8.18 billion
- Total segment operating income $3.85 billion, +17% y/y, expected $3.51 billion
- Operating income from Entertainment division $781 million, expected $808.1 million
- Operating income from direct sales to consumers $47 million, expected loss of $113.9 million
- Operating income from Sports $778 million, expected $733.4 million
- Operating income from Experiences division $2.29 billion, expected $2.27 billion
- Total number of Hulu subscribers 50.2 million, 49.78 million expected
Shares of EV manufacturer Lucid Group (LCID.US) are losing nearly 8% early in the session as the company posted a loss per share of 30 cents per share. The company confirmed its forecasts for vehicle production this year. What's more, the company's revenue beat expectations at $157 million to $173 million.
Early in the session, elevated selling pressure was also seen on shares of Palantir Technologies (PLTR.US). Shares fell 11% after the company reported weaker-than-expected guidance for the year. Full-year revenue is expected to come in between $2.68 billion and $2.69 billion, lower than the $2.71 billion expected by analysts.
Analyst action
Oppenheimer is lowering its target price to $475 from $500 for shares of Ulta Beauty (ULTA.US), as it expects conservative growth in the face of increasing competition.
Citi upgraded shares of Gap (GPS.US) to a “buy” rating from its previous “neutral” rating. The bank expects the company's quarterly earnings could beat analysts' expectations. The company's shares are gaining more than 3%.
