Shares of The Walt Disney Co (DIS, Financial) experienced a surge, climbing 7.21%, driven by the company's impressive quarterly financial results. This positive movement reflects investors' confidence in Disney's future prospects, as evidenced by a robust performance report.
Walt Disney Co (DIS, Financial) reported a 6% year-over-year revenue increase to $22.6 billion in the fiscal 2024 fourth quarter ending September 28. The company also achieved a notable 39% rise in adjusted earnings per share (EPS) to $1.14, exceeding analysts' expectations. These figures underscore the company's strong financial health and ability to surpass market predictions.
In the entertainment streaming segment, which encompasses Disney+ and Hulu, Disney reported an operating profit of $253 million, significantly higher than Wall Street's forecast of $131 million. Looking ahead, Disney projects this profit to more than triple to $875 million by 2025, highlighting its significant growth potential in the streaming industry.
CEO Bob Iger and CFO Hugh Johnston have emphasized the company's strategic achievements, including box office successes like "Inside Out 2" and "Marvel's Deadpool & Wolverine," as well as a record-breaking 60 Emmy Awards. These successes have not only bolstered Disney's brand but have contributed to its financial uplift.
For fiscal 2025, Disney anticipates high-single-digit adjusted EPS growth and plans to increase dividends. In the following years, fiscal 2026 and 2027 are expected to see double-digit EPS growth, which will likely continue to drive investor confidence and provide positive momentum for the stock.
When evaluating Disney's stock, the current price per share is $109.93, with a price-to-earnings (P/E) ratio of 42.28. The stock's GF Value is estimated at $111.63, suggesting that the stock is fairly valued GF Value. Despite some medium and severe warning signs, such as a declining gross margin and operating margin, there are several good signs, including a high Piotroski F-Score of 8, indicating a very healthy situation. Additionally, the stock's dividend yield is close to a 3-year high, appealing to income-seeking investors.
As Disney continues to capitalize on its diverse business segments—spanning media networks, parks and resorts, studio entertainment, and consumer products—investors may find value in the company's strategic direction and growth prospects. The market capitalization stands at approximately $199.37 billion, indicating Disney's significant presence in the entertainment industry.
