Shares of Walt Disney Co (NYSE: DIS) climbed more than 7.5% in premarket trading Thursday after the company reported better-than-expected earnings and revenue numbers for Q1 2022.

The entertainment and media company posted adjusted EPS of $1.06, compared to the analyst consensus of 63 cents per share, according to Refinitiv. Revenue came in at $21.82 billion in the quarter, versus the $20.91 billion consensus.

The number of total subscribers for the company’s Disney+ streaming service stood at 129.8 million in the quarter, topping the consensus estimates of 125.75 million, as per StreetAccount.

Disney added 12 million new subscribers in Q1 2022 and reported average revenue per user (ARPU) in the U.S. and Canada growth to $6.68 per month, compared to $5.80 in the year-ago quarter.

The company’s parks, experiences and consumer products segment reported $7.2 billion in revenue in the quarter, doubling the $3.6 billion it reported in Q1 2021. The division posted operating results of $2.5 billion, compared to a $100 million loss in the year-ago period.

The consumer products division reported a revenue drop of 8.5% to $1.5 billion.

Goldman Sachs analyst Brett Feldman maintained a Buy rating and a $205.00 per share price target.

“We see DIS’s F1Q22 results as a positive catalyst for the stock owing to better than expected operating trends (especially in DTC and Parks), improved visibility on DIS’s path to post-COVID fundamentals, and improved transparency into core KPIs,” he wrote in a client note.

KeyBanc analyst Brandon Nispel reiterated an Overweight rating and a $216.00 per share price target following earnings.

“Results didn't come in quite as we previewed, but were better than our conservative view on Disney+ subs and Parks OI. With improved disclosures from DIS within DTC, DTC long-term sub outlook that was intact, and Parks operating at high efficiency, we continue to view DIS as one of our top ideas. We see a compelling risk/reward based on DIS EV/EBITDA/growth, which makes DIS one of the most attractive companies in our coverage,” Nispel said in a client note.

By Senad Karaahmetovic | [email protected]