Disney Beats Q4 Estimates as Streaming Turns Profitable; Shares Surge 10%

Nov 14, 2024, 12:07 PM

The Walt Disney Company reported its fourth-quarter and full-year earnings for fiscal 2024, exceeding analyst expectations. In the fourth quarter, adjusted earnings per share (EPS) were $1.14, surpassing the estimated $1.10 and marking a 39% increase year-over-year. Revenue for the quarter reached $22.6 billion, exceeding expectations of $22.47 billion and up 6% from the prior year. For the full fiscal year, revenue was $91.4 billion, a 3% increase year-over-year, and adjusted EPS more than doubled to $2.72. Disney+ core paid subscribers rose to 122.7 million, surpassing estimates of 119.85 million, and combined with Hulu, total subscriptions reached 174 million. The direct-to-consumer streaming segment achieved a profit of $321 million, a significant turnaround from a loss of $387 million in the same quarter last year. Income before income taxes declined 6% to $0.9 billion in the quarter. The entertainment segment generated revenue of $10.83 billion, while the experiences segment, including theme parks and resorts, reported revenue of $8.24 billion. CEO Bob Iger highlighted the company's accomplishments, stating, "In Q4 we saw one of the best quarters in the history of our film studio, improved profitability in our streaming businesses, a record-breaking 60 Emmy Awards for the company, and the continued power of live sports." The company provided strong guidance for fiscal years 2025 through 2027, expecting high single-digit adjusted EPS growth in FY25 and double-digit growth in FY26 and FY27. Disney also announced plans for $3 billion in stock repurchases during FY25 and aims for double-digit growth in cash provided by operations for FY26. Following the earnings announcement, Disney shares surged in pre-market trading, extending gains up to 10%.