Disney Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
Segment Details
Media and Entertainment Distribution revenues (45.3% of revenues) increased 1.2% year over year to $10.7 billion.Revenues from Linear Networks declined 14.7% year over year to $2.27 billion. Direct-to-Consumer revenues increased 6.4% year over year to $6.17 billion. Content Sales/Licensing and Other revenues grew 6.9% year over year to $2.25 billion.Parks, Experiences and Products revenues (38.4% of revenues) rose 8.3% year over year to $9.08 billion. Domestic revenues were $6.4 billion, up 10% year over year. International revenues increased 5.6% year over year to $1.69 billion in the reported quarter. Meanwhile, revenues from Disney's Consumer Products increased 2.9% year over year to $992 million.
The Walt Disney Company Price, Consensus and EPS Surprise
The Walt Disney Company price-consensus-eps-surprise-chart | The Walt Disney Company Quote
Subscriber Details
As of June 28, 2025, Disney+ had 127.8 million paid subscribers compared with 126 million as of March 29, 2025. Domestic Disney+ average monthly revenue per paid subscriber increased 0.4% sequentially to $8.09 as higher advertising revenues were offset by the impact of subscriber mix shifts.International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber rose 2% sequentially to $7.67 due to increases in prices and subscriber mix shifts.Hulu SVOD Only average monthly revenue per paid subscriber increased 0.3% sequentially to $12.4, as higher advertising revenues were offset by the impact of subscriber mix shifts.
Operating Details
Costs & expenses increased 1% year over year to $20 billion in the reported quarter.
Segmental operating income was $4.57 billion, up 8.3% year over year.Media and Entertainment Distribution's segmental operating income declined 14.9% year over year to $1.02 billion due to lower results at Linear Networks and Content Sales/Licensing, partially offset by an improvement in Direct-to-Consumer.Linear Networks' operating income declined 27.8% to $697 million. Domestic operating income fell 13.9% year over year to $587 million due to a decline in advertising revenues attributable to a decrease in rates and average viewership.Direct-to-Consumer operating income was $346 million against the year-ago quarter's loss of $19 million, primarily owing to subscription revenue growth attributable to higher effective rates, reflecting increases in prices and subscriber growth. The increase was also driven by the absence of Star India subscription revenues in the current quarter due to the Star India transaction. Content Sales/Licensing and Other operating loss came in at $21 million against an operating income of $254 million reported in the year-ago quarter. The decrease in operating results was due to lower theatrical distribution results and higher cost impairments in the current quarter. The current quarter reflected to release of Elio, Thunderbolts and Lilo & Stitch, while the prior-year quarter included Inside Out 2.Parks, Experiences and Products' operating income was $3.51 billion, up 13.2% year over year. The Domestic segment reported an operating income of $1.65 billion, up 22.5% year over year, due to growth in domestic parks and resorts and, to a lesser extent, Disney Cruise Line, reflecting an increase in guest spending and higher volumes attributable to increases in passenger cruise days and occupied room nights.The International segment reported an operating income of $422 million, down 3% year over year.Consumer Products' operating profit increased 0.9% year over year to $444 million.
Balance Sheet
As of June 28, 2025, cash and cash equivalents were $5.36 billion compared with $5.85 billion as of March 29, 2025.Total borrowings (including the current portion of borrowings) were $42.2 billion as of March 29, 2025, compared with $42.9 billion as of March 29, 2025.Free cash flow was $1.88 billion in the reported quarter.
Guidance
In the fourth quarter of fiscal 2025, Disney expects total Disney+ and Hulu subscriptions to increase by more than 10 million compared to third-quarter fiscal 2025, with the majority of the rise coming from Hulu as a result of an expanded Charter deal. For Disney+ subscribers specifically, the company anticipates a modest increase compared to third-quarter fiscal 2025 levels.Disney provided comprehensive guidance for fiscal 2025, projecting adjusted earnings per share of $5.85, representing an 18% increase over fiscal 2024. For the Entertainment segment, the company expects Direct-to-Consumer operating income of $1.3 billion and double-digit percentage segment operating income growth overall. The Sports segment is projected to achieve 18% segment operating income growth, while the Experiences segment is expected to deliver 8% segment operating income growth.The company also provided specific guidance on operational expenses, projecting Disney Cruise Line pre-opening expenses of approximately $185 million for the full fiscal year, with roughly $50 million of that amount expected in fourth-quarter fiscal 2025. Additionally, Disney anticipates an equity loss from their India joint venture of approximately $200 million, which is primarily driven by purchase accounting amortization related to the joint venture formation completed in November 2024.This guidance reflects Disney's expectations as management continues to execute on its strategic priorities across streaming services, traditional entertainment, sports programming, and theme park experiences, while managing the integration costs and impacts from recent strategic transactions and business expansions.
Zacks Rank & Other Stocks to Consider
Disney currently carries a Zacks Rank #2 (Buy).Amer Sports, Inc. AS, Afya AFYA and ADTALEM GBL EDU ATGE are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector. Afya currently sports a Zacks Rank #1 (Strong Buy). Afya is set to report its second-quarter 2025 results on Aug. 21. You can see the complete list of today's Zacks #1 Rank stocks here.Amer Sports currently carries a Zacks Rank #2. Amer Sports is set to report its second-quarter 2025 results on Aug.19.ADTALEM GBL EDU currently carries a Zacks Rank #2. ADTALEM GBL EDU is set to report its fourth-quarter fiscal 2025 results on Aug.7.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
Afya Limited (AFYA) : Free Stock Analysis Report
Amer Sports, Inc. (AS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Earnings live: Eli Lilly stock slides, Pinterest sells off, Block gains after hours
Second quarter earnings season is in full swing, and the results have been largely positive so far, with more positive surprises than negative ones. Companies had a lower bar to clear coming into the quarter, as analysts tempered their expectations amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy. This week, investors hear from Tyson (TSN), AMD (AMD), Snap (SNAP), McDonald's (MCD), Disney (DIS), Uber (UBER), Lyft (LYFT), Palantir (PLTR), and more when they report results. Data from FactSet published Friday showed that with 66% of the index having reported results, analysts expect S&P 500 companies to report a 10.3% jump in earnings per share during the second quarter. Heading into the quarter, analysts expected S&P 500 earnings to rise 5% in Q2, which would mark the slowest pace of earnings growth since the fourth quarter of 2023. Here are the latest updates from corporate America. Pinterest beats revenue estimates but misses on earnings Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations. Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35. Global monthly active users on the site increased 11% annually to reach 578 million. The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%. 'I'm proud of our Q2 results—delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.' Read more here. Block stock surges on strong profit growth, raised guidance Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon. Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion. Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories. For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth. Read more here. Texas Roadhouse issues cautious inflation guidance, stock falls Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading. The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%. "Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands." For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year. Investors are 'agitated by anything short of perfect' this earnings season Yahoo Finance's Josh Schafer writes: Read more here. Sunrun stock soars 30% on strong results despite policy challenges Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks. In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence. The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry. "Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026." The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer. Tariffs loom over Crocs's third quarter financial outlook Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business. The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results. "We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books." On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%. The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs. Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share. Peloton stock soars on swing to profit Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year. Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading. The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter. Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA. Duolingo surges as AI-led growth, forecast raise boost investor confidence The stock is on a tear, up over 25% in premarket trading. Reuters reports: Read more here. Warner Bros. Discovery posts surprise profit Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit. The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results. The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21. Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines." Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers. The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets. Read more here. Eli Lilly second quarter earnings beat estimates, but stock dives on GLP-1 pill trial results Yahoo Finance's Anjalee Khemlani reports: Read more here. One call out on Airbnb Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins. If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid. SoftBank swings to profit on vision fund gains ahead of AI push Bloomberg News reports: Read more here. Sony in-demand games and music help allay Trump tariff fears Bloomberg News reports: Read more here. Toyota warns of $9.5B tariff hit, slashes annual profit forecast Japan's Toyota Motor (TM) stock fell over 1% in premarket trading on Thursday after saying it expected a nearly $10 billion hit from President Trump's tariffs on cars imported into the US. Reuters reports; Read more here. E.l.f. stock falls as tariffs compress margins, weigh on profits E.l.f. Beauty (ELF) stock fell after hours as tariffs began to weigh on the mass market beauty company's profits. Net sales rose 9% to $353.7 million, in line with analysts' estimates, according to S&P Global Market Intelligence. Diluted earnings per share were $0.58, compared with analysts' estimates of $0.65 per share. The company said gross margins decreased approximately 215 basis points to 69%, primarily driven by tariffs. During the quarter, e.l.f. raised prices by $1 to help offset some of the higher prices from tariffs, as most of its product mix is produced overseas, especially in China. E.l.f. did not provide a full-year financial outlook due to uncertainty from tariffs, but said it expects net sales to grow above 9% in the first half of the 2026 fiscal year, but margins to compress to 20%, compared to 23% the year prior. It did complete its acquisition of Hailey Bieber's rhode beauty brand on Aug. 5, the company said. Read more here. Duolingo raises annual forecast, boosting shares Reuters reports: Read more here. Bumble paying users decline 8%, company appoints new CFO Bumble (BMBL) on Wednesday announced that Kevin Cook will transition into the CFO role on Aug. 12, succeeding the company's interim CFO Ronald J. Fior. Shares of the online dating app dropped 8% after hours, however, following less-than-stellar second quarter results showing limited progress so far from the company's turnaround efforts. Revenue decreased 7.6% annually to $248.2 million, compared to $268.6 million last year. Analysts were expecting revenue of $245 million. Total paying users also decreased 8.7% to 3.8 million, compared to 4.1 million the previous year. Read more here. Lyft stock slides after results failed to impress Lyft (LYFT) stock slid after hours after the ride-hailing company missed second quarter revenue estimates on Wednesday amid heightened competition with Uber (UBER) and weakening demand. However, Lyft raised its guidance for gross bookings in the current quarter to between $4.65 billion and $4.80 billion, well above estimates of $4.59 billion. Here are Lyft's top- and bottom-line results for the quarter, compared to S&P Global Market Intelligence consensus estimates: Earlier in the day, rival Uber reported it saw trips surge 18% year over year, putting pressure on Lyft to report impressive results. While Uber stock popped earlier in the day, it closed about 0.2% lower on the day. Reuters reports: Read more here. Airbnb earnings top estimates, company announces $6 billion in stock buybacks Airbnb (ABNB) stock wavered in after-hours trading after better-than-expected earnings, a slight guidance lift, and a new $6 billion stock buyback program. The company said it saw stable travel demand and booking lead times in the second quarter despite global economic uncertainty. Net income grew 16% year over year to $642 million, the company reported, with earnings per share coming in at $1.03 versus $0.94 estimated. Revenue rose 13% year over year, reaching $3.1 billion, above estimates for $3.02 billion. For the third quarter, Airbnb expects revenue between $4.02 billion and $4.10 billion, the midpoint of which is higher than analysts' average estimate of $4.05 billion. Airbnb also announced a new stock buyback program to purchase up to an additional $6 billion of Class A common stock. Read more here. DoorDash stock pops after earnings beat across all metrics as consumers paid up for convenience DoorDash (DASH) reported second quarter results that beat on both the top and bottom lines on Wednesday, with its orders also rising more than forecast. Earnings per share came in at $0.65, $0.20 more than the Street had forecast. Adjusted EBITDA reached $655 million in the quarter. Revenue grew 25% year over year to $3.28 billion, compared to the $3.17 billion the Street predicted. Total orders, which means all orders through its marketplaces and commerce platform, also jumped 20% to 761 million in the quarter. That's more than the 749 million analysts had anticipated. Shares rose as much as 3% after the results. Marketplace GOV, which is the total dollar value of transactions completed through the marketplace, including taxes, tips, and fees related to DashPass and its international platform Wolt+, clocked in at $24.2 billion compared to the expected $23.6 billion. Year to date, the stock has been on a tear, up more than 50%, compared to the S&P 500's (^GSPC) 8% gain. The company said total orders were driven by strength in the US restaurant category, as its DashPass membership members ordered more frequently. It added that it continues to "improve the value proposition" for its DashPass membership. DoorDash expects marketplace GOV in the current quarter to come in between $24.2 billion and $24.7 billion. Adjusted EBITDA is expected to fall between $680 million and$780 million in its third quarter. Pinterest beats revenue estimates but misses on earnings Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations. Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35. Global monthly active users on the site increased 11% annually to reach 578 million. The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%. 'I'm proud of our Q2 results—delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.' Read more here. Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations. Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35. Global monthly active users on the site increased 11% annually to reach 578 million. The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%. 'I'm proud of our Q2 results—delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.' Read more here. Block stock surges on strong profit growth, raised guidance Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon. Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion. Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories. For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth. Read more here. Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon. Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion. Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories. For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth. Read more here. Texas Roadhouse issues cautious inflation guidance, stock falls Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading. The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%. "Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands." For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year. Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading. The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%. "Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands." For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year. Investors are 'agitated by anything short of perfect' this earnings season Yahoo Finance's Josh Schafer writes: Read more here. Yahoo Finance's Josh Schafer writes: Read more here. Sunrun stock soars 30% on strong results despite policy challenges Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks. In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence. The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry. "Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026." The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer. Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks. In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence. The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry. "Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026." The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer. Tariffs loom over Crocs's third quarter financial outlook Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business. The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results. "We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books." On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%. The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs. Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share. Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business. The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results. "We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books." On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%. The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs. Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share. Peloton stock soars on swing to profit Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year. Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading. The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter. Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA. Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year. Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading. The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter. Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA. Duolingo surges as AI-led growth, forecast raise boost investor confidence The stock is on a tear, up over 25% in premarket trading. Reuters reports: Read more here. The stock is on a tear, up over 25% in premarket trading. Reuters reports: Read more here. Warner Bros. Discovery posts surprise profit Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit. The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results. The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21. Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines." Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers. The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets. Read more here. Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit. The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results. The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21. Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines." Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers. The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets. Read more here. Eli Lilly second quarter earnings beat estimates, but stock dives on GLP-1 pill trial results Yahoo Finance's Anjalee Khemlani reports: Read more here. Yahoo Finance's Anjalee Khemlani reports: Read more here. One call out on Airbnb Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins. If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid. Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins. If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid. SoftBank swings to profit on vision fund gains ahead of AI push Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Sony in-demand games and music help allay Trump tariff fears Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Toyota warns of $9.5B tariff hit, slashes annual profit forecast Japan's Toyota Motor (TM) stock fell over 1% in premarket trading on Thursday after saying it expected a nearly $10 billion hit from President Trump's tariffs on cars imported into the US. Reuters reports; Read more here. Japan's Toyota Motor (TM) stock fell over 1% in premarket trading on Thursday after saying it expected a nearly $10 billion hit from President Trump's tariffs on cars imported into the US. Reuters reports; Read more here. E.l.f. stock falls as tariffs compress margins, weigh on profits E.l.f. Beauty (ELF) stock fell after hours as tariffs began to weigh on the mass market beauty company's profits. Net sales rose 9% to $353.7 million, in line with analysts' estimates, according to S&P Global Market Intelligence. Diluted earnings per share were $0.58, compared with analysts' estimates of $0.65 per share. The company said gross margins decreased approximately 215 basis points to 69%, primarily driven by tariffs. During the quarter, e.l.f. raised prices by $1 to help offset some of the higher prices from tariffs, as most of its product mix is produced overseas, especially in China. E.l.f. did not provide a full-year financial outlook due to uncertainty from tariffs, but said it expects net sales to grow above 9% in the first half of the 2026 fiscal year, but margins to compress to 20%, compared to 23% the year prior. It did complete its acquisition of Hailey Bieber's rhode beauty brand on Aug. 5, the company said. Read more here. E.l.f. Beauty (ELF) stock fell after hours as tariffs began to weigh on the mass market beauty company's profits. Net sales rose 9% to $353.7 million, in line with analysts' estimates, according to S&P Global Market Intelligence. Diluted earnings per share were $0.58, compared with analysts' estimates of $0.65 per share. The company said gross margins decreased approximately 215 basis points to 69%, primarily driven by tariffs. During the quarter, e.l.f. raised prices by $1 to help offset some of the higher prices from tariffs, as most of its product mix is produced overseas, especially in China. E.l.f. did not provide a full-year financial outlook due to uncertainty from tariffs, but said it expects net sales to grow above 9% in the first half of the 2026 fiscal year, but margins to compress to 20%, compared to 23% the year prior. It did complete its acquisition of Hailey Bieber's rhode beauty brand on Aug. 5, the company said. Read more here. Duolingo raises annual forecast, boosting shares Reuters reports: Read more here. Reuters reports: Read more here. Bumble paying users decline 8%, company appoints new CFO Bumble (BMBL) on Wednesday announced that Kevin Cook will transition into the CFO role on Aug. 12, succeeding the company's interim CFO Ronald J. Fior. Shares of the online dating app dropped 8% after hours, however, following less-than-stellar second quarter results showing limited progress so far from the company's turnaround efforts. Revenue decreased 7.6% annually to $248.2 million, compared to $268.6 million last year. Analysts were expecting revenue of $245 million. Total paying users also decreased 8.7% to 3.8 million, compared to 4.1 million the previous year. Read more here. Bumble (BMBL) on Wednesday announced that Kevin Cook will transition into the CFO role on Aug. 12, succeeding the company's interim CFO Ronald J. Fior. Shares of the online dating app dropped 8% after hours, however, following less-than-stellar second quarter results showing limited progress so far from the company's turnaround efforts. Revenue decreased 7.6% annually to $248.2 million, compared to $268.6 million last year. Analysts were expecting revenue of $245 million. Total paying users also decreased 8.7% to 3.8 million, compared to 4.1 million the previous year. Read more here. Lyft stock slides after results failed to impress Lyft (LYFT) stock slid after hours after the ride-hailing company missed second quarter revenue estimates on Wednesday amid heightened competition with Uber (UBER) and weakening demand. However, Lyft raised its guidance for gross bookings in the current quarter to between $4.65 billion and $4.80 billion, well above estimates of $4.59 billion. Here are Lyft's top- and bottom-line results for the quarter, compared to S&P Global Market Intelligence consensus estimates: Earlier in the day, rival Uber reported it saw trips surge 18% year over year, putting pressure on Lyft to report impressive results. While Uber stock popped earlier in the day, it closed about 0.2% lower on the day. Reuters reports: Read more here. Lyft (LYFT) stock slid after hours after the ride-hailing company missed second quarter revenue estimates on Wednesday amid heightened competition with Uber (UBER) and weakening demand. However, Lyft raised its guidance for gross bookings in the current quarter to between $4.65 billion and $4.80 billion, well above estimates of $4.59 billion. Here are Lyft's top- and bottom-line results for the quarter, compared to S&P Global Market Intelligence consensus estimates: Earlier in the day, rival Uber reported it saw trips surge 18% year over year, putting pressure on Lyft to report impressive results. While Uber stock popped earlier in the day, it closed about 0.2% lower on the day. Reuters reports: Read more here. Airbnb earnings top estimates, company announces $6 billion in stock buybacks Airbnb (ABNB) stock wavered in after-hours trading after better-than-expected earnings, a slight guidance lift, and a new $6 billion stock buyback program. The company said it saw stable travel demand and booking lead times in the second quarter despite global economic uncertainty. Net income grew 16% year over year to $642 million, the company reported, with earnings per share coming in at $1.03 versus $0.94 estimated. Revenue rose 13% year over year, reaching $3.1 billion, above estimates for $3.02 billion. For the third quarter, Airbnb expects revenue between $4.02 billion and $4.10 billion, the midpoint of which is higher than analysts' average estimate of $4.05 billion. Airbnb also announced a new stock buyback program to purchase up to an additional $6 billion of Class A common stock. Read more here. Airbnb (ABNB) stock wavered in after-hours trading after better-than-expected earnings, a slight guidance lift, and a new $6 billion stock buyback program. The company said it saw stable travel demand and booking lead times in the second quarter despite global economic uncertainty. Net income grew 16% year over year to $642 million, the company reported, with earnings per share coming in at $1.03 versus $0.94 estimated. Revenue rose 13% year over year, reaching $3.1 billion, above estimates for $3.02 billion. For the third quarter, Airbnb expects revenue between $4.02 billion and $4.10 billion, the midpoint of which is higher than analysts' average estimate of $4.05 billion. Airbnb also announced a new stock buyback program to purchase up to an additional $6 billion of Class A common stock. Read more here. DoorDash stock pops after earnings beat across all metrics as consumers paid up for convenience DoorDash (DASH) reported second quarter results that beat on both the top and bottom lines on Wednesday, with its orders also rising more than forecast. Earnings per share came in at $0.65, $0.20 more than the Street had forecast. Adjusted EBITDA reached $655 million in the quarter. Revenue grew 25% year over year to $3.28 billion, compared to the $3.17 billion the Street predicted. Total orders, which means all orders through its marketplaces and commerce platform, also jumped 20% to 761 million in the quarter. That's more than the 749 million analysts had anticipated. Shares rose as much as 3% after the results. Marketplace GOV, which is the total dollar value of transactions completed through the marketplace, including taxes, tips, and fees related to DashPass and its international platform Wolt+, clocked in at $24.2 billion compared to the expected $23.6 billion. Year to date, the stock has been on a tear, up more than 50%, compared to the S&P 500's (^GSPC) 8% gain. The company said total orders were driven by strength in the US restaurant category, as its DashPass membership members ordered more frequently. It added that it continues to "improve the value proposition" for its DashPass membership. DoorDash expects marketplace GOV in the current quarter to come in between $24.2 billion and $24.7 billion. Adjusted EBITDA is expected to fall between $680 million and$780 million in its third quarter. DoorDash (DASH) reported second quarter results that beat on both the top and bottom lines on Wednesday, with its orders also rising more than forecast. Earnings per share came in at $0.65, $0.20 more than the Street had forecast. Adjusted EBITDA reached $655 million in the quarter. Revenue grew 25% year over year to $3.28 billion, compared to the $3.17 billion the Street predicted. Total orders, which means all orders through its marketplaces and commerce platform, also jumped 20% to 761 million in the quarter. That's more than the 749 million analysts had anticipated. Shares rose as much as 3% after the results. Marketplace GOV, which is the total dollar value of transactions completed through the marketplace, including taxes, tips, and fees related to DashPass and its international platform Wolt+, clocked in at $24.2 billion compared to the expected $23.6 billion. Year to date, the stock has been on a tear, up more than 50%, compared to the S&P 500's (^GSPC) 8% gain. The company said total orders were driven by strength in the US restaurant category, as its DashPass membership members ordered more frequently. It added that it continues to "improve the value proposition" for its DashPass membership. DoorDash expects marketplace GOV in the current quarter to come in between $24.2 billion and $24.7 billion. Adjusted EBITDA is expected to fall between $680 million and$780 million in its third quarter. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Gizmodo
25 minutes ago
- Gizmodo
Lucasfilm and Gina Carano Have Settled Their Lawsuit
The saga of Cara Dune vs. Star Wars has come to an end. Lucasfilm and the Walt Disney Company have reached an agreement with actress Gina Carano in their legal dispute over her firing from The Mandalorian. 'The Walt Disney Company and Lucasfilm are pleased to announce that we have reached an agreement with Gina Carano to resolve the issues in her pending lawsuit against the companies,' a spokesperson from Lucasfilm said. 'Ms. Carano was always well respected by her directors, co-stars, and staff, and she worked hard to perfect her craft while treating her colleagues with kindness and respect. With this lawsuit concluded, we look forward to identifying opportunities to work together with Ms. Carano in the near future.' This story is ongoing… Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what's next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.
Business Insider
26 minutes ago
- Business Insider
David Ellison says AI shouldn't scare Hollywood
As David Ellison takes over the newly formed Paramount Skydance, he has a clear message for Hollywood grappling with AI's encroachment: don't fear it. "We're not going to be afraid of tech, we're going to embrace it," Ellison said at a press event Thursday, where he fielded questions on his plans for the newly formed company. "I don't think AI is a replacement for creativity." Hollywood has a split personality when it comes to AI. Some like Lionsgate and AMC have publicly acknowledged recent deals with prominent AI company Runway, and Netflix has shared how it's used AI in the content creation process. Others, like Disney, have demurred about their work in the space, sensitive to the need to protect their famous IP and relations with talent who worry about the tech being used to steal their likeness and other risks. Disney and NBCUniversal are suing the AI company Midjourney, alleging copyright infringement. Ellison, whose father, Oracle's Larry Ellison, helped bankroll the merger, has made tech a big part of his pitch to combine his Skydance with the larger Paramount. He laid out a number of ways he plans to do that, starting with consolidation on the streaming side. The company has three streamers supported by three tech stacks, and the plan is to collapse those into one stack "really quickly." He also plans to use AI to improve the ability for people to find shows they like on the streamers and impact how content is created. Ellison stressed that his embrace of tech shouldn't worry creatives, though. He compared the use of AI to Pixar popularizing 3D computer animation over hand-drawn animation in the 1990s. "There was an uproar over the notion that technology was going to disrupt the animators," he said. "And Pixar would always say, 'We're just giving the animators their own pencil to create things you could never create before.' And I think we're in another one of those times we're going to see that level of shift." As far as applying AI, he said it could help make big-budget films. He gave the example of a blockbuster like the original "Terminator" and how it would be a lot more expensive to make today. That "basically means that young artists and filmmakers actually can't go out there and tell bold, original stories," he said. Ellison also imagined using advanced AI models to let people engage with characters directly: "That's a lot closer, I think, than people realize it is." But while people have given one-off examples of how AI can make individual projects cheaper, no one really knows how much it can move the needle for Hollywood. Paramount, like much of the rest of the industry, has to deal with a declining linear TV business, debt, and a sub-scale, still not globally profitable streaming business. A recent study commissioned by the Concept Art Association and the Animation Guild, meanwhile, predicted that AI would impact more than 200,000 Hollywood jobs over the next three years. Along with tech, Ellison said he plans to grow the streaming business by making more movies and shows. The company is open to joint ventures with other streamers. Paramount Skydance execs also said linear TV was still a focus. They singled out Nickelodeon as one channel that's an important way to keep families and kids, and would be a big priority for investment.
