Disney (DIS) announced earnings after market close on February 4th and the results were impressive across the board.

The good stuff (there’s a lot):

• Revenue of $20.86 billion was up 36% year over year and beat consensus estimates of $20.81 billion
• As of February 3rd, Disney+ had 28.6 million subscribers, which blew away early estimates and means after a mere three months they have nearly half the number of domestic subscribers that Netflix has. It’s also already halfway to the lower end of their 60 – 90 million estimate for 2024.
• The bundling of Disney+/Hulu/ESPN+ seems to be working too, as ESPN+ went from 3.5 million subscribers to 7.6 million in those same three months
• Disney also announced they would be launching Disney+ in India via Hotstar in March, which is earlier than previously expected
• Revenue by segment was strong across the board:
  • Media Networks – Up 24% year-over-year
  • Parks, Experiences, and Products – Up 8% year-over-year
  • Studio Entertainment – Up >100% year-over-year
  • Direct-to-Consumer and International – Up >100% year-over-year

Obviously some of those comparisons are skewed due to the Fox acquisition and the fact that Disney+ didn’t even exist a year ago, but those are still some impressive results (and will make for some tough comps next time around). Still, if you’re a Disney shareholder (as I am), then you should be pretty pleased with those results. So why is Disney down a few percentage points?

I’m honestly not sure. There appeared to be some concern that they weren’t raising guidance around Disney+ despite the fast head start the service has had, but the explanation that it was too early made sense to me (Disney+ still isn’t available in many countries around the world). There could also be some concern over how the Coronavirus will affect future earnings after Disney shut down their parks in Shanghai and Hong Kong.

Neither of those dampen my enthusiasm for the stock at all. Disney had a magical year at the box office last year which it is unlikely to replicate in 2020, but the stars seem to be aligning for incredible growth in their streaming services as new original content comes online and the service becomes available in other countries. I’m as excited as ever to be a shareholder and look forward to holding for many years to come.