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Benzinga
Benzinga
Business
Henry Khederian

Why Disney Shares Are Moving Following Netflix's Earnings Report

Several notable names in the streaming and entertainment sector, including Walt Disney Co (NYSE:DIS), are trading lower in sympathy with Netflix Inc (NASDAQ:NFLX) after the company reported first-quarter earnings results.

Netflix reported quarterly earnings of $3.53 per share which beat the analyst consensus estimate of $2.90. Netflix also reported quarterly sales of $7.87 billion which missed the analyst consensus estimate of $7.93 billion by 1%.  Global streaming paid net additions were down 200 thousand. 

Netflix sees second-quarter revenue of $8.053 billion, below the analyst consensus estimate of $8.21 billion. Netflix also sees EPS of $3.00, below the analyst consensus estimate of EPS of $3.01. Netflix also guided for second-quarter global streaming paid memberships of 219.64 million, which represents a decrease of 2 million from the first quarter.

See Also: Netflix Shares Plunge After Q1 Earnings, First Subscriber Loss Since 2011

Netflix also saw several analyst rating revisions Wednesday morning: 

  • JP Morgan analyst Doug Anmuth downgraded Netflix from Overweight to Neutral and announced a $300 price target.
  • Atlantic Equities analyst Hamilton Faber downgraded Netflix from Overweight to Neutral and announced a $280 price target.
  • Piper Sandler analyst Thomas Champion downgraded Netflix from Overweight to Neutral and lowered the price target from $562 to $293.
  • Pivotal Research analyst Jeffrey Wlodarczak downgraded Netflix from Buy to Sell and lowered the price target from $550 to $235.
  • Stifel analyst Scott Devitt downgraded Netflix from Buy to Hold and announced a $300 price target.
  • UBS analyst John Hodulik downgraded Netflix from Buy to Neutral and announced a $355 price target.
  • Barclays analyst Kannan Venkateshwar maintained Netflix with an Equal-Weight and lowered the price target from $380 to $275.
  • B of A Securities analyst Nat Schindler downgraded Netflix from Buy to Underperform and lowered the price target from $605 to $300.
  • Credit Suisse analyst Douglas Mitchelson maintained Netflix with a Neutral and lowered the price target from $450 to $350.
  • Needham analyst Laura Martin upgraded Netflix from Underperform to Hold.
  • BMO Capital analyst Daniel Salmon maintained Netflix with an Outperform and lowered the price target from $640 to $405.
  • Oppenheimer analyst Jed Kelly downgraded Netflix from Outperform to Perform.

 

According to data from Benzinga Pro, Disney is trading lower by 4.76% to $125.62. Disney has a 52-week high of $190.33 and a 52-week low of $126.82.

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