Jim Cramer Discusses "Overreaction" In Disney (DIS) Shares

We recently published 8 Stocks Jim Cramer Discussed & Mentioned An Important Quantum Computing Development. The Walt Disney Company (NYSE:DIS) is one of the stocks Jim Cramer discussed.

The day this show was aired, The Walt Disney Company (NYSE:DIS) had just reported its earnings. The results saw the firm’s fiscal fourth-quarter earnings of $22.46 billion miss analyst estimates of $22.75 billion, while its $1.11 in adjusted EPS beat $1.05 in estimates. The day ended with the stock closing 7% lower, and here’s what Cramer said in the morning:

“[On earnings and share price 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 call it ‘distaant,’ like distant. . “David, and you want to do experiences, which I think is the greatest division, but David, $120 million in dry dock expenses. . .all I’m saying is, is you’ve got to get those ships in the water and it’s going to change people’s perception. I think the buyback, I’ve asked them to do accelerated buyback, I think that would be terrific. That’s what DuPont did, a brilliant buyback. But I think the problem is, again, they’re just people who keep, expect something from Disney that Disney can’t give them yet. “I will point out just to go back, because it’s rather shocking, the decline in Disney. It’s down ten dollars. Now, when I read over everything, I wasn’t happy with it but I can’t get down ten dollars. I was only unhappy with the linear. Ten dollars is a violent overreaction to a company that is generating a lot of cash flow, has a big buyback, gave you a bigger dividend, that’s just plain violent. “[After Carl pointed out that the pricing backdrop in streaming industry didn’t lend itself to subscription hikes in previous weeks] Well I think that, no it doesn’t. You’re right, no it doesn’t. . .I look at it as a work-in-progress, it’s just that maybe people feel David we’re done with the work-in-progress, we expected the work.”

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Disclosure: None. This article is originally published at Insider Monkey.