Walt Disney Co. exceeded Wall Street’s expectations in its fourth-quarter earnings report, largely driven by the blockbuster success of ‘Deadpool & Wolverine’, which brought in $1.3 billion in global ticket sales. This film, alongside other major releases, propelled Disney’s Entertainment unit earnings and provided a positive outlook for fiscal 2025.
Disney’s Q4 earnings per share (EPS) reached $1.14, beating the $1.10 forecasted by analysts. Revenue also surpassed estimates, hitting $22.6 billion, with operating income climbing 23% year-on-year to nearly $3.7 billion. The company projects high single-digit adjusted EPS growth for fiscal 2025 and plans a $3 billion stock buyback amid a projected $8 billion in capital expenditures.
- Entertainment: Operating income soared, doubling to $1.1 billion due to high-profile releases like ‘Deadpool & Wolverine’ and Hulu’s hit ‘Only Murders in the Building’.
- Streaming: Disney+, Hulu, and ESPN+ collectively turned a profit of $321 million, marking the second consecutive quarter of streaming profitability and growth to 122.7 million Disney+ subscribers outside India.
- Experiences Segment: Revenue fell 6% to $1.66 billion, impacted by international park costs and new attraction investments.
- Sports Division: Operating income declined 5% to $929 million, affected by high production costs for college football at ESPN.
CEO Bob Iger, who returned to lead Disney in November 2022, credited aggressive cost-cutting and enhanced film/TV production strategies for Disney’s financial resurgence. CFO Hugh Johnston emphasized the company’s visibility on future growth, highlighting projected double-digit EPS growth in 2026 and 2027.
Credit: This article is based on information from Disney’s official earnings report and Reuters.
Key Highlights:
- Disney Q4 earnings exceeded forecasts, with revenue driven by ‘Deadpool & Wolverine’ success.
- Strong streaming gains marked Disney’s second consecutive profitable quarter for digital services.
- The company projects robust growth into fiscal 2025 and beyond, signaling optimism for stakeholders.
