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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates ClaimsOn Behalf of Investors of The Walt Disney Company - DIS
News provided byPomerantz LLP
Jun 05, 2023, 6:34 PM ET
NEW YORK, June 5, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Walt Disney Company ("Disney" or the "Company") (NYSE: DIS). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
The investigation concerns whether Disney and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On September 21, 2021, Disney gave a virtual presentation at the Goldman Sachs Communacopia Conference. During the presentation, Chief Executive Officer Robert Chapek acknowledged that Disney+ subscriber growth had slowed in the fourth quarter of the fiscal year ended October 2, 2021.
On this news, Disney's stock price fell $7.44 per share, or more than 4%, to close at $178.61 per share on September 20, 2021.
On November 10, 2021, Disney reported its financial results for its fourth quarter and fiscal year ended October 2, 2021. Disney posted quarterly results that missed Wall Street's already diminished expectations as the Company saw a dramatic slowdown in Disney+ subscribers. The Company added just 2.1 million customers during the quarter (the smallest quarterly gain since the service's launch two years prior), revenue of $18.53 billion, and adjusted earnings per share of 37 cents – all of which were below consensus estimates of 119.6 million subscribers, $18.78 billion in revenues, and adjusted earnings per share of 49 cents.
On this news, Disney's stock price fell $12.34 per share, or more than 7%, to close at $162.11 per share on November 11, 2021.
Finally, on November 8, 2022, Disney issued a press release reporting the Company's financial results for its fourth quarter and fiscal year ended October 1, 2022. Disney missed analyst estimates by wide margins on both the top and bottom lines. Revenue in the quarter grew just 9% to $20.15 billion, below estimates at $21.36 billion. Sales, at $20.2 billion, fell about $1 billion short of analysts' projections. Earnings, excluding certain items, fell to 30 cents share, missing the average estimate of 51 cents from analysts surveyed by Bloomberg. The Company's DTC segment, which includes streaming services Disney+, ESPN+, Hulu, and Hotstar, reported a monumental operating loss of $1.47 billion compared to a $630 million loss in the same quarter the year prior. Revenue in the segment increased just 8% to $4.9 billion. The Company also reported a decline in its average revenue per Disney+ subscriber, as more customers subscribed through a discounted bundle with the Company's other services. Notably, the bundled offering made up about 40% of domestic subscribers, confirming that Disney was relying on short-term promotional efforts to boost subscriber growth while impairing the platform's long-term profitability.
On this news, Disney's stock price fell $13.15 per share, or more than 13%, to close at $86.75 per share on November 9, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
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