Disney stock rallies despite mixed earnings
Disney beat earnings forecasts but missed on revenue, but the stock has managed to rally, forming a possible higher low.
Disney beats earnings estimates
Walt Disney Co (All Sessions) has joined the parade of firms beating forecasts, reporting EPS of 6 cents compared to forecasts of a loss of 63 cents per share.
The mixed performance from Disney perfectly summarises the tough outlook facing US corporates. While it beat the earnings forecast, it was unable to exceed revenue estimates. While the firm added 57.5 million subscribers to its Disney+ division, this was below forecasts, and with revenue from its Parks arm down over 80% the group clearly faces a struggle in the months ahead.
The immediate reaction has seen the stock rise 3.4%, as investors look beyond the tough quarter to continued reopening of parks, while Disney+ is expected to see further growth.
Disney stock price: technical analysis
Like so many stocks Disney has seen its rally from the March lows falter. It hit $130 in June but then dropped back. However, late June saw a higher low at $109, and a possible higher low at $115 ahead of earnings appears to confirm the bullish trend. IF we see this higher low continue to hold, backed up by bullish crossovers in stochastics and MACD then a resumption of the move higher may be in play.
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