Disney rises slightly on earnings beat as Fox deal closes

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Disney closed its acquisition of Fox's entertainment assets during the quarter and has since unveiled details for its new streaming service.

Disney popped about 1% after reporting earnings and revenue that beat analyst estimates for its second quarter 2019.Disney reported a 3% increase in revenue for the quarter compared to the same period last year. In Q2 of 2019, Disney reported $14.92 billion in revenue compared to $14.55 billion the previous year. The company reported a 13% decrease in EPS, ex-items affecting comparability, reporting $1.61 per share this quarter compared to $1.84 last year.

Disney's direct-to-consumer segment grew 15% year over year, coming in at $955 million, the company said. Disney said operating losses more than doubled as a result of investments into ESPN+, the upcoming launch of Disney+, and consolidation of Hulu, in which which Disney now has a controlling stake.

On a call with analysts following the report, CEO Bob Iger confirmed Disney has discussed the possibility of Comcast divesting its stake in Hulu as well and said there would likely be an agreement over keeping programming on the platform.

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