The stock of Walt Disney Co. (DIS) is up 10% after the entertainment giant reported financial results that beat Wall Street forecasts.
For its fiscal fourth quarter, Disney announced earnings per share (EPS) of $1.14 U.S., which was ahead of the $1.10 U.S. expected among analysts.
Revenue in the quarter totaled $22.57 billion U.S., which topped Wall Street estimates of $22.45 billion U.S.
The strong results were powered by the company’s entertainment segment, which includes its Disney+ streaming service.
Revenue in the entertainment segment rose 14% year-over-year to $10.83 billion U.S., fueled by both a strong summer box office and growth in streaming.
Disney’s “Inside Out 2” became the highest-grossing animated film of all time this summer, and “Deadpool & Wolverine” became the highest-grossing R-rated movie ever.
Overall, the entertainment segment reported $1.1 billion U.S. in profit for the quarter. Revenue for Disney’s sports segment, made up of ESPN, was flat during the period.
Disney’s combined streaming businesses, which include Disney+, Hulu and ESPN+, saw profitability improve, reporting operating income of $321 million U.S. compared to a $387 million U.S. loss a year ago.
Subscribers to Disney+ grew by 4.4 million, or 4%, to 122.7 million in the July through September quarter. The number of Hulu subscribers rose 2% to 52 million.
Offsetting the gains was Disney’s traditional TV business that continues to decline as consumers abandon network TV in favour of streaming.
Revenue for Disney’s TV networks, which include ABC and the Disney Channel, was down 6% to $2.46 billion U.S. Profit for the segment declined 38% to $498 million U.S.
The experiences segment, which includes Disney’s theme parks and cruise line, saw its revenue grow 1% to $8.24 billion U.S.
In terms of guidance, Disney said it expects a “modest decline” in Disney+ subscribers during the first quarter of its 2025 fiscal year.
Management said they anticipates double-digit percentage growth in the company’s entertainment segment during fiscal 2025.
Prior to today (Nov. 14), Disney’s stock had risen 13% this year to trade at $102.72 U.S. per share.
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