Walt Disney Co. saw its stock surge 10% on Thursday after the company posted a solid fiscal fourth-quarter report that beat expectations, largely due to a significant turnaround in its streaming and content units.
Key Highlights from Disney's Q4 Earnings
Earnings and Revenue Beat: Disney reported adjusted earnings of $1.14 per share on $22.6 billion in revenue, surpassing FactSet estimates of $1.11 per share on $22.49 billion.
Streaming Turnaround: The streaming division, which includes Disney+ and ESPN+, posted an impressive operating profit of $321 million, a stark improvement from a $387 million loss the prior year. For the fiscal year, the streaming unit achieved a profit of $134 million, recovering from a $2.61 billion loss in 2022.
Box Office Boost: A strong showing from films like Inside Out 2 and Deadpool & Wolverine contributed $316 million to the Content Sales & Licensing segment, exceeding the estimated $312 million.
Guidance for Growth: Disney projects an increase in streaming operating profit by $875 million in 2025, showing confidence in the long-term profitability of its direct-to-consumer strategy amid declining traditional TV viewership.
Theme Parks and Experiences: Operating income from Disney's theme parks fell 6% year-over-year to $1.7 billion. The company noted that recent hurricanes would impact first-quarter operating income by $130 million, while analysts caution that consumer spending pressures might moderate future park growth.
Share Repurchases and EPS Growth: Disney announced a goal to buy back $3 billion of its stock next fiscal year and expects high-single-digit EPS growth in 2025, signaling a strategic pivot towards shareholder returns.
Competitive Landscape
Disney remains under pressure in an intensely competitive streaming market. Rivals like Netflix, Paramount+, and Peacock continue to attract subscribers with innovative strategies, including ad-supported tiers and crackdowns on password sharing. Netflix, in particular, reported 70 million monthly active users on its ad-supported tier, highlighting the popularity of lower-cost subscription options.
Conclusion
Disney's robust Q4 earnings, driven by a profitable streaming unit, record box office performance, and ambitious growth targets, have restored investor confidence. With strategic new content, operational improvements, and a focus on enhancing visitor experiences at its theme parks, Disney appears well-positioned to navigate future challenges and growth opportunities in the entertainment and streaming sectors. The stock, which is up 25% year-to-date, was the best performer in the Dow Jones Industrial Average on Thursday, reaching $113.73 per share.
コメント