In Disney and Pixar’s “Inside Out 2,” Joy, Sadness, Anger, Fear and Disgust meet new emotions.
Disney | Pixar
Disney reported its fiscal fourth-quarter earnings Thursday, narrowly beating analyst estimates as streaming growth helped propel its entertainment segment.
The streaming business’ growth and profitability — combined with a blockbuster summer at the box office and further investments in the company’s theme parks business — comes during a time of turmoil across the media industry. Disney has been restructuring the Mouse House under the stewardship of returnee CEO Bob Iger, who’s getting the company into shape before handing it off to a successor in early 2026.
Company executives on Thursday touted Disney’s significant progress during the last year and said they’re “confident in the long-term prospects for the business,” issuing guidance that includes its fiscal 2025, 2026 and 2027.
During Disney’s fiscal 2025, the company expects high-single-digit adjusted earnings growth compared with the prior fiscal year. The company expects double-digit adjusted EPS growth in both fiscal 2026 and 2027.
“I think the fact that we have had such a strong ’24 overall has been an important part of the guidance we are getting,” said Chief Financial Officer Hugh Johnston in an interview Thursday with CNBC’s “Squawk Box.” “If you think of the big initiatives we have invested, putting creativity back at the center of the company, and on top of that, we said we wanted to improve profitability and we are clearly doing that in a substantive way.”
Disney’s stock was up more than 9% in early trading.
Here is what Disney reported compared with what Wall Street expected, according to LSEG
- Earnings per share: $1.14 adjusted vs. $1.10 expected
- Revenue: $22.57 billion vs. $22.45 billion expected
Disney’s net income increased to $460 million, or 25 cents per share, from $264 million, or 14 cents per share, during the same quarter last year. Adjusting for one-time items, including restructuring and impairment charges, Disney reported earnings per share of $1.14. Disney’s overall revenue was up 6% to $22.57 billion compared with the same prior fiscal quarter.
Total segment operating income increased 23% to $3.66 billion compared with the same period in 2023.
Revenue for the entertainment segment – which includes the traditional TV networks, direct-to-consumer streaming and films – increased 14% year over year to $10.83 billion after a hot summer at the box office.
Disney Pixar’s “Inside Out 2” became the highest-grossing animated movie of all time this summer, surpassing Disney’s “Frozen II” at the box office. Meanwhile, its “Deadpool & Wolverine” became the highest-grossing R-rated film of all time, surpassing Warner Bros. Discovery’s “Joker.”
The films added $316 million of profit for the entertainment segment during the quarter. Overall, the entertainment segment reported nearly $1.1 billion in profit.
Disney became the first film studio to cross $4 billion globally…
Read More: Disney (DIS) earnings Q4 2024