Walt Disney Company reported strong first-quarter earnings, exceeding Wall Street's forecasts. The success of 'Moana 2', growth in the streaming business, and international park performance contributed to the impressive results.
Walt Disney Company surpassed Wall Street's expectations for its fiscal first quarter, fueled by strong holiday box office performance and growth in its streaming business. The company reported a 44% jump in adjusted earnings per share to $1.76, exceeding the consensus estimate of $1.45. Revenue climbed 5% to $24.69 billion, slightly surpassing analysts' projections. Operating income surged 31% year-over-year to $5.1 billion. Disney 's impressive results were driven by several factors.
The animated sequel 'Moana 2' proved to be a box office hit, generating over $1 billion in revenue during the Martin Luther King Jr. Day weekend. This contributed significantly to the Entertainment unit's strong performance, with operating income nearly doubling year-over-year to reach $1.7 billion. Additionally, the company's streaming business experienced higher profits, although Disney+ subscriber numbers saw a slight dip of 1% to 124.6 million due to a recent price increase. The company anticipates a modest decline in Disney+ subscribers in the coming quarter as well. Despite this, Disney remains optimistic about its streaming future, citing increased user engagement with the addition of ESPN to the platform. They plan to launch a dedicated 'SportsCenter' studio show called 'SC+' later this year, further capitalizing on the growing interest in sports content. However, the company's traditional television business continued to decline, with operating income at linear networks falling 11% to $1.1 billion. CEO Bob Iger acknowledged this trend but expressed confidence in the overall strength of Disney's television portfolio, stating he wouldn't rule out potential restructuring of some smaller networks. Impacting the parks segment, hurricanes Helene and Milton in Florida, coupled with expenses related to the launch of the Disney Treasure cruise ship, led to a 5% decline in profit at domestic parks. Conversely, international parks witnessed a 28% increase in operating income compared to the previous year
Earnings Disney Streaming 'Moana 2' Box Office Parks Hurricanes Streaming Growth Disney+
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