Disney Beats Earnings with EPS 1.43, Streaming Profits Rise on 'Inside Out 2', Parks Face Challenges

Aug 7, 2024, 11:38 AM

The Walt Disney Company reported its fiscal third-quarter earnings, revealing a notable shift in its business dynamics. The company exceeded Wall Street expectations with earnings per share of $1.43, surpassing the forecast of $1.20, and revenue reaching $23.2 billion, above the anticipated $23.08 billion. This performance was bolstered by the success of the animated film 'Inside Out 2,' which contributed to a profit in Disney's streaming segment for the first time. Disney+ Core subscribers increased to 118.3 million, marking a slight year-over-year growth. However, the company's theme parks segment experienced a decline in operating income, attributed to a moderation in consumer demand and economic uncertainty affecting lower-income consumers. Disney's CFO Hugh Johnston noted that while lower-income consumers are spending less at parks, higher-income consumers are traveling internationally more. Despite the earnings beat, Disney's stock saw a pre-market decline of 2.8%, reflecting concerns over the parks' performance and future demand trends. Disney's market capitalization stands at $164.02 billion.