Walt Disney Co. (DIS, Financials) saw its shares spike Thursday following a robust earnings report. The stock surged over 10% at the market's opening and, as of last look, DIS shares are up 6.2%.
Disney exceeded forecasts with a 6% increase in sales, while profits per share came in almost 3% over projections. Closing off the fiscal year with a 21% gain, total operating income climbed 23% year over-year.
Strong performance from "Inside Out 2" and "Deadpool & Wolverine" drove Disney's film studio's great results. Reaching worldwide sales of $1.05 billion and $1.338 billion respectively, both movies dominated domestic box office charts for 2024 collecting $653 million and $637 million respectively.
Disney+ core memberships on the streaming front rose 4% to 121.7 million, surpassing estimate by over 3 million. Disney+ Hotstar and Hulu also recorded subscription increases; Hulu grew by 2% to reach 52 million. ESPN viewers dropped from 71 million the year before to 66 million in fiscal 2024, however.
Disney's acceptance of its $8.5 billion joint venture with Reliance, therefore indicating continuous worldwide development, helped to further solidify its position in the Indian market.
Looking forward, Disney expected double-digit earnings per share improvements for fiscal years 2026 and 2027 while projecting high single-digit profit growth for fiscal 2025.
Citing Disney's top assets in entertainment and theme parks—with near-term growth potential in its direct-to--consumer segment—BofA analyst Jessica Reif Ehrlich reiterated a Buy recommendation for the business. Disney's fiscal 2026 estimate indicates to predicted profits per share of around $6.00, above the consensus prediction of $5.73, according to Goldman Sachs analyst Michael Ng.
Disney voiced hope on booking patterns for its Parks segment in the second half of 2025 during its results call. Dealing with persistent rumors, the business said it does not now have any imminent intentions to sell its television holdings or purchase more content or distribution channels.
