Disney's Q4 EPS Surges 39% to $1.14, Beats Revenue Estimates, Raises FY25 Guidance

Nov 14, 2024, 11:45 AM

Walt Disney Co. reported fiscal fourth-quarter results that beat analysts' expectations, driven by strong performance in its streaming services and film studio. Adjusted earnings per share increased 39% year-over-year to $1.14, surpassing estimates of $1.10, while revenue rose 6% to $22.6 billion, exceeding the expected $22.4 billion. Disney+ Core subscribers grew to 122.7 million, ahead of projections of 119.85 million, indicating robust growth in the company's streaming segment. Entertainment revenue reached $10.83 billion, slightly above estimates of $10.66 billion, while experiences revenue, which includes theme parks, was $8.24 billion, surpassing the expected $8.2 billion. Despite these gains, income before income taxes declined 6% to $0.9 billion from $1.0 billion in the prior-year quarter, and the cable and theme park profit engines lost steam, underscoring ongoing challenges. The CEO highlighted the quarter as one of the best in the company's film studio history, with improved profitability in streaming businesses, and a record-breaking 60 Emmy Awards. Disney provided optimistic guidance for fiscal year 2025, forecasting high-single-digit adjusted EPS growth, exceeding the estimated 4%, and announced plans to repurchase $3 billion in stock during FY25. Additionally, the company expects dividend growth to track earnings and projected profits to jump over the next three years, a rare move as Disney typically does not provide long-range profit projections.