Disney earnings up on streaming ‘Moana 2’

Walt Disney Co. in Burbank reported fiscal first-quarter results that topped analysts’ estimates, fueled by the blockbuster film Moana 2 and higher income from its streaming services.

Excluding some items, earnings rose to $1.76 a share, Disney said Wednesday in a statement, beating the $1.42 average of analysts’ estimates compiled by Bloomberg. Revenue in the period ended Dec. 28 came in slightly above expectations, increasing 5% to $24.7 billion.

The improved performances of Disney’s streaming operation and film studio led to a 31% gain in operating income for the quarter. Other Disney businesses struggled, with profit from TV networks slumping and theme park earnings little changed.

During the period, Disney raised the price of the Disney+ and Hulu streaming services by as much as 25%. That contributed to earnings of $293 million in the period, compared with a year-ago loss, along with a dip in Disney+ subscribers to 124.6 million accounts. Analysts were predicting a total of 119 million subscribers.

The quarter marked the third straight period of streaming profitability for Disney, helped by the introduction of an ad-supported tier and a crackdown on password sharing, as well as the higher prices.

Disney reported operating income of $3.11 billion from its experiences division, which includes theme parks and cruises.

Postal service reverses on China mail

The U.S. Postal Service said it’s accepting “all international inbound mail and packages” from China and Hong Kong, walking back an announcement made only hours earlier to halt some overseas shipments.

The agency is working with U.S. Customs and Border Protection to minimize delivery disruptions while implementing an “efficient collection mechanism” for new tariffs on China, the postal service said in an emailed statement. The acceptance of packages was effective Wednesday.

The resumption of normal service capped about 12 hours of confusion after the postal service said late Tuesday that it would temporarily freeze the package shipments from China and Hong Kong, without providing an explanation. The abrupt move threatened to exacerbate a trade war and weighed on shares of retailers such as Alibaba Group Holding Ltd. and JD.com Inc.

It’s unclear what prompted the initial pause and the subsequent reversal or whether the turnaround was the result of a political decision or a logistical one.

Workday lays off 8.5% of its workforce

Workday is cutting about 1,750 jobs, or 8.5% of its workforce.

In a Wednesday memo to employees, published in a securities filing, Workday CEO Carl Eschenbach said the layoffs were necessary for ongoing growth efforts at the company — including a particular focus on artificial intelligence investments.

Workday aims to notify the majority of employees affected by the cuts on Wednesday.

Compiled from Bloomberg and Associated Press reports.