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Disney's earnings beat, Gap CEO steps down — What to know in markets Friday

Heidi Chung
Reporter

Disney’s better-than-expected fiscal fourth quarter financial results and Gap’s c-suite shakeup will take the spotlight Friday.

After the closing bell Thursday, media behemoth Disney (DIS) announced fiscal fourth quarter earnings and revenue that beat Wall Street’s estimates. The company reported adjusted earnings of $1.07 per share on $19.1 billion. Analysts were predicting adjusted earnings of 95 cents per share on $19.05 billion during Disney’s most recent quarter.

Scenes of the Millennium Falcon at Black Spire Outpost during a sneak peek for invited guests of the Star Wars: Galaxys Edge attraction at Disneys Hollywood Studios in Lake Buena Vista, Fla. (Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images)

“Our solid results in the fourth quarter reflect the ongoing strength of our brands and businesses,” Disney CEO Bob Iger said in a statement. “We’ve spent the last few years completely transforming The Walt Disney Company to focus the resources and immense creativity across the entire company on delivering an extraordinary direct-to-consumer experience, and we’re excited for the launch of Disney+ on November 12.”

Disney’s Media Networks segment revenue jumped 22% year-over-year to $6.5 billion, while the Parks segment revenue rose 8% to $6.66 billion, and Studio Entertainment segment revenue surged 52% to $3.31 billion.

Meanwhile, operating losses for Disney’s Direct-to-Consumer & International segment, which includes Disney+, were narrower than expected at $740 million. Analysts were anticipating operating losses of $811.1 million operating during the quarter.

Shares rose more than 3.5% on the results in the after-hours session.

Gap CEO departs

Yet another CEO is heading for the exit. Gap announced Thursday evening that current CEO Art Peck will be stepping down from his role after a brief transition period. Robert Fisher, Gap’s current non-executive chairman, will serve as interim president and CEO, effective immediately.

“On behalf of the entire Board, I want to thank Art for his many contributions to Gap Inc., spanning a nearly 15-year career with the company,” Fisher said in a statement. "Under Art’s tenure as CEO, we have made progress investing in capabilities that bode well for the future such as expanding the omni-channel customer experience and building our digital capabilities.”

Gap has been under significant pressure as sales at the company continue to struggle. The apparel giant also issued weak forecast. The news sent shares plunging 10% in the after-hours session Thursday.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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