Analysts were expecting a painful loss for Disney going into last night earnings call. Instead, the company delivered an adjusted profit of 8 cents per share. Disney stock climbed 5% in after-hours trading, boosting the entire Dow Jones index.
Despite a brutal $3.5 billion hit to its Parks revenue this quarter, investors think the worst is now over for Disney. Bloomberg’s Paul Sweeney explains:
This will probably be the trough quarter for Disney here as the global economies begin to slowly re-open.
Across the board, earnings have been nowhere near as disastrous as many feared. Apple, Alphabet, Facebook, and Amazon all beat expectations last week, which goes some way to justifying the impressive bounce in the stock market.