Analyst Note| Neil Macker, CFA |
Disney reported a mixed fiscal 2021 second quarter as revenue fell short of FactSet consensus and operating income came in well ahead of Street expectations. Disney+ added over 8 million customers to end the quarter at 104 million subscribers, well below the 21 million new subscribers added in the fiscal first quarter. While subscriber growth has slowed, we still expect robust long-term growth for the service. The parks and theatrical businesses were hammered again by the pandemic as revenue collapsed 68% and 93%, respectively, versus a year ago. We are maintaining our wide moat rating and $154 fair value estimate.