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Magic Kingdom at Walt Disney World in Orlando, Florida
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Disney soars on earnings beat and improved full-year outlook

The Mouse House saw big strength in its parks business.

It’s the stuff that investor dreams are made of.

Disney shares popped 6% in premarket trading Wednesday after the company reported better-than-expected earnings for its fiscal second quarter thanks to impressive results in its parks business.

Adjusted earnings per share came in at $1.45, well above the $1.20 estimate among analysts polled by Bloomberg. Revenue landed at $23.6 billion, also topping Wall Street’s expected $23 billion.

Meanwhile, Disney’s streaming business notched its third straight quarter of profitability. Disney+ added 1.4 million new subscriptions to a total of 126 million — also above expectations.

Looking ahead, Disney expects full-year earnings per share of $5.75, a 16% jump from last year and ahead of the $5.44 estimate. Previously, the company saw only “high single digit” EPS growth.

Management also upped full-year guidance on cash from operations, primarily due to tax deferrals.

Disney shares were down about 17% year to date prior to this post-earnings pop.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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