Walt Disney Co (NYSE:DIS) stock rose 3.99% (As on November 15, 11:22:10 AM UTC-4, Source: Google Finance) after the company’s fourth-quarter adjusted profit beat Wall Street’s expectations, bolstered by strong results from company’s entertainment business and its streaming service. Disney earned $460 million, or 25 cents per share, for the period ended Sept. 28. A year earlier the Burbank, California-based company earned $264 million, or 14 cents per share.
Moreover, Entertainment segment operating income improved significantly, to $1.1 billion, up $0.8 billion in Q4 versus the prior-year quarter. Entertainment DTC delivered 14% ad revenue growth in Q4, contributing to $253 million in operating income, and the combined DTC streaming businesses improved their profitability in Q4, with operating income of $321 million. The company ended the quarter with 174 million Disney+ Core and Hulu subscriptions, and more than 120 million Disney+ Core paid subscribers, an increase of 4.4 million over the prior quarter. Pixar’s Inside Out 2 and Marvel’s Deadpool & Wolverine broke numerous box office records and helped drive $316 million in operating income at Content Sales/Licensing and Other in Q4. Sports segment operating income was $0.9 billion, a decline of $0.1 billion compared to the prior-year quarter. Domestic ESPN advertising revenue in Q4 grew 7% versus the prior-year quarter. The Experiences segment had record revenue and operating income for the full year. In Q4, Experiences revenue increased $0.1 billion, or 1%, and operating income of $1.7 billion was a decline of $0.1 billion, or 6% compared to the prior-year quarter. Domestic Parks & Experiences operating income increased in Q4, on comparable attendance to the prior-year quarter, driven by higher guest spending, partially offset by higher expenses and costs related to new guest offerings driven by Disney Cruise Line. International Parks & Experiences operating income declined in Q4.
DIS in the third quarter of FY 24 has reported the adjusted earnings per share of $1.14, beating the analysts’ estimates for the adjusted earnings per share of $1.09, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 6 percent to $22.57 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $22.59 billion.
Looking ahead, Disney anticipates high-single digit adjusted earnings per share growth for fiscal 2025. The company predicts double digit earnings per share growth for fiscal 2026 and 2027.