Disney made solid gains in tough economic times for its fiscal 3rd quarter.
Its theme parks and resorts saw an increase in European visitors, encouraged by a weak dollar, contributing to 3% profit growth and 5% revenue growth. Its Florida and Paris parks logged strong traffic.
So, do the analysts that predicted a softening in the theme park numbers get to keep their jobs? Or do they simply change psychics?
Still, after posting numbers better than expected, I do not understand this reaction from the market:
Following its earnings report, Disney shares dropped 2.4% in after-hours trading to $30.90, canceling a 2.4% increase that occurred during the regular session.
This happens every time, with Disney and also with Apple from what I've seen. What gives? The financial sector has got to be one of the most irrational fields that I know of, as bad as politics.
Zz.
1 comment:
My guess is momentum traders, or people who swung through the stock when it was below $30 banking that the numbers would be good (as they were, and we expected) and then unloaded it for a tighty profit.
If not, they could have sat on it and waiting for it to recover, sold options on it, or just dumped it and took their loss.
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