Disney said it topped Wall Street estimates for its fiscal fourth quarter with solid results as it billed more subscribers for its streaming services like Disney+, Hulu, and ESPN+. The company earned $1.14 per share on revenue of $22.57 billion, well above expectations for $1.10 per share and $22.47 billion in revenue.
Streaming revenues are doing well in the business, helping it to make a turnaround in losses to stand at $321 million in operating income. Of course, that’s way off the book from the loss recorded in this period last year, at $387 million. Disney+ core subscribers are also still growing at a 4% pace to 122.7 million, among the reasons for the surge in the streaming revenue. Not only did the company post a near-strong box office performance with Inside Out 2 and Deadpool & Wolverine, among many other hits, but the entertainment segment nearly posted $1.1 billion in profit.
Its overall segments put together operating income that will see it surge 23% to $3.66 billion despite headwinds coming into the company’s traditional TV networks. The company’s theme parks were very good, although the international parks saw a drop in attendance.
Disney issued forward-looking optimistic guidance, including high single-digit growth in fiscal 2025 and expecting double-digit growth in both 2026 and 2027. With such good results, stock has gone up by over 9% as of early trading. This shows investors believe in the company’s future, and Disney will continue to restructure under CEO Bob Iger until it capitalizes on streaming momentum and enhances profitability.
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