Jim Cramer Discusses “Overreaction” In Disney (DIS) Shares

The time this amusement was aired, The Walt Disney Company (NYSE:DIS) had conscionable reported its earnings. The results saw the firm’s fiscal fourth-quarter net of $22.46 cardinal miss expert estimates of $22.75 billion, portion its $1.11 successful adjusted EPS bushed $1.05 successful estimates. The time ended with the banal closing 7% lower, and here’s what Cramer said successful the morning:

“[On net and stock terms movement] That’s an overreaction. You got a dividend boost, you got a buyback, it’s an overreaction. . . .linear, linear’s just, if they could spinoff linear, they could telephone it ‘distaant,’ similar distant. . “David, and you privation to bash experiences, which I deliberation is the top division, but David, $120 cardinal successful adust dock expenses. . .all I’m saying is, is you’ve got to get those ships successful the h2o and it’s going to alteration people’s perception. I deliberation the buyback, I’ve asked them to bash accelerated buyback, I deliberation that would beryllium terrific. That’s what DuPont did, a superb buyback. But I deliberation the occupation is, again, they’re conscionable radical who keep, expect thing from Disney that Disney can’t springiness them yet. “I volition constituent retired conscionable to spell back, due to the fact that it’s alternatively shocking, the diminution successful Disney. It’s down 10 dollars. Now, erstwhile I work implicit everything, I wasn’t blessed with it but I can’t get down 10 dollars. I was lone unhappy with the linear. Ten dollars is simply a convulsive overreaction to a institution that is generating a batch of currency flow, has a large buyback, gave you a bigger dividend, that’s conscionable plain violent. “[After Carl pointed retired that the pricing backdrop successful streaming manufacture didn’t lend itself to subscription hikes successful erstwhile weeks] Well I deliberation that, nary it doesn’t. You’re right, nary it doesn’t. . .I look astatine it arsenic a work-in-progress, it’s conscionable that possibly radical consciousness David we’re done with the work-in-progress, we expected the work.”

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.