Walt Disney Co. disappointed Wall Street with a tepid full-year profit forecast, weighed down by its struggling movie and TV businesses. Earnings should increase 18% to $5.85 share in fiscal 2025, excluding some costs, the company said Wednesday. That outlook was less than some analysts had been expecting and put a damper on a mostly positive third-quarter report that showed strength in theme parks and streaming, two growth businesses. Disney expects to generate $1.3 billion of operating income from its direct-to-consumer streaming business in fiscal 2025, which ends in September, up from a previous forecast of $1 billion. Management also expects operating income from the parks business to increase 8% in the current fiscal year — at the top end of previous guidance. Revenue from Disney’s traditional TV networks, which include ABC and National Geographic, fell 15% in the quarter to $2.27 billion. Operating income tumbled 28% to $697 million due to a decline in viewers and lower advertising rates. The unit that includes the Disney film studios lost $21 million in the quarter, hurt by the disappointing theatrical performance of the Pixar film Elio and Thunderbolts* from Marvel Studios. The loss was likely due to write downs associated with those features, analysts at Barclays Research wrote in a note. For analysis, Paul Sweeney and Isabelle Lee speak with Bloomberg Intelligence Senior Analyst Geetha Ranganathan.See omnystudio.com/listener for privacy information.
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8:07
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8:07
Weekly Roundup: Apple, Eli Lilly, Trade Desk
On this episode of Stock Movers:- Apple (AAPL) accounted for about a third of of the S&P 500’s weekly gain after announcing a further massive investment in US manufacturing, which should mitigate tariff costs over the longer term. - Eli Lilly (LLY) had its worst week since 2008 after investors reacted to disappointing data on weight loss pill. The new weight-loss pill had lower weight loss and higher rates of nausea and vomiting than anticipated in a study, according to the company. BMO analyst Evan Seigerman said of Lilly's pill, "What this shows to me is that it's still a good drug, but it's bound by the limitations of being a GLP-1" drug. Lilly Chief Scientific Medical Officer Daniel Skovronsky said, "I know Wall Street has kind of focused on the exact numbers here and making cross-trial comparisons, but I don't think that carries over to the real world at all," in response to the study's results. - Trade Desk (TTD) was down 39% today as analysts downgraded the stock amid growing fears that its advertising technology will be impacted by Amazon's offerings. The central concern for analysts is improvements Amazon has made to its demand-side platform, where advertisers buy ad space designed to reach relevant online audiences. According to Richard Greenfield, an analyst at Lightshed Partners, Trade Desk Chief Executive Officer Jeff Green's comments dismissing competition from Amazon "should scare any investor who owns Trade Desk stock or is thinking about investing in it".See omnystudio.com/listener for privacy information.
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4:19
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4:19
Fannie Mae & Freddic Mac IPO Weighed, Gilead Sciences Lifts Outlook, Under Armour Sinks on Weak Sales
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Katie Griefeld, Scarlet Fu, Carol Massar and Jess Menton.On this episode of Stock Movers:- The Trump administration is considering selling shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) in an offering that could start as early as this year, according to senior administration officials. The plan could value the government-controlled mortgage giants at some $500 billion or more and would involve selling between 5% and 15% of their stock with an offering expected to raise about $30 billion. No final decision has been made and President Donald Trump is still weighing his options, one official said. The Wall Street Journal earlier reported the news. Shares of both Fannie Mae and Freddie Mac surged as much as 22% in Friday trading, the most in more than two months.- Gilead Sciences (GILD) lifted its full-year outlook after strong HIV drug sales in the second quarter helped revenue and earnings modestly beat analyst expectations. The company now expects profit excluding some items will be as much as $8.25 a share this year, up from a prior forecast of as much as $8.10. The drugmaker also raised its guidance for annual product sales by about $100 million.- Under Armour (UAA) plummeted after forecasting worse-than-expected sales and profit for the current quarter, stalling a turnaround plan that was taking hold. The Baltimore, Maryland-based brand said revenue for its second quarter is expected to fall between 6% and 7%. Analysts on average projected a drop of almost 3%. Shares of the athletic-wear brand company dropped as much as 21% in New York. So far this year, the stock had declined almost 20% as of the close on Thursday.See omnystudio.com/listener for privacy information.
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5:04
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5:04
Trade Desk Sinks, Sweetgreen Plunges, Heartflow Surges After IPO
On this episode of Stock Movers:- Trade Desk (TTD) analysts are bailing on the one-time market favorite amid growing fears that its advertising technology will get steamrolled by Amazon.com Inc.’s offerings. At least four firms downgraded the stock in the wake of its results and forecast, which crystallized concerns over its growth prospects in a future where Amazon is a more pronounced player.- Sweetgreen (SG) is lower after it slashed its sales guidance after a second straight quarter of disappointing results, highlighting the salad chain’s struggles to sell $15 salads to budget-strained diners. CEO Jonathan Neman said the quarter’s performance reflected macroeconomic challenges and subdued trends in the industry, particularly in several of the company’s biggest urban markets. Sweetgreen is also discontinuing its ripple fries, Neman said, citing the complexity the menu item added to kitchens- Heartflow (HTFL) shares surged 66% after the artificial intelligence software platform focused on heart disease raised $317 million in its initial public offering. Shares of the Mountain View, California-based company traded at $31.49 each on Friday as of 1:01 p.m. in New York, versus an IPO price of $19 apiece. The offering of 16.67 million shares by the company priced above range, after the stock was marketed for $17 to $18 each. The trading gives Heartflow a market value of about $2.6 billion based on the outstanding shares listed in its filings.See omnystudio.com/listener for privacy information.
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4:56
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4:56
Block Rises, Pinterest Slumps, Trade Desk Drops after Earnings
On this episode of Stock Movers:- Block (XYZ) shares rise after the company beat estimates and raised its full-year profit guidance. JPMorgan said the quarter was “impressive.”- Pinterest (PINS) shares slump after the search and discovery company reported adjusted second-quarter earnings that missed expectations. - Trade Desk (TTD) shares drop after the advertising technology company reported second-quarter results that spurred multiple downgrades. Firms note growing concerns about competition from Amazon.See omnystudio.com/listener for privacy information.
Stock Movers features five-minute conversations on today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.
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