Disney (DIS) Earnings Q4 2024

Disney reported its fiscal fourth-quarter earnings on Thursday, narrowly beating analyst estimates as streaming growth helped propel the entertainment segment.

Here’s what Disney reported compared to what Wall Street expected, according to LSEG

• Earnings per share: $1.14 adjusted vs. $1.10 expected
• Income: $22.57 billion versus $22.45 billion expected

Disney’s net income rose to $460 million, or 25 cents per share, from $264 million, or 14 cents per share, in the same quarter last year. Adjusted for one-time items, including restructuring and impairment charges, Disney reported earnings per share of share at $1.14.

Total operating income in the segment increased 23% to $3.66 billion compared to the same period in 2023.

Revenue for the entertainment segment — which includes the traditional TV networks, direct-to-consumer streaming and movies — rose 14% year over year to $10.83 billion after a hot summer at the box office.

Disney Pixar’s “Inside Out 2” became the highest-grossing animated film of all time this summer, surpassing Disney’s “Frozen II” at the box office. Meanwhile, its “Deadpool & Wolverine” became the highest-grossing R-rated film of all time, surpassing Warner Bros. Discovery’s “Joker”.

The movies added $316 million in profit to the entertainment segment during the quarter. Overall, the entertainment segment reported nearly $1.1 billion in profit.

Revenue for Disney’s sports segment, which consists primarily of ESPN, was flat. ESPN’s profit fell 6%, partly due to higher programming costs associated with American college football rights as well as fewer customers in the cable package.

Disney’s combined streaming business, which includes Disney+, Hulu and ESPN+, saw profitability improve during the quarter after turning its first profit in the third quarter, three months earlier than expected. The division reported operating income of $321 million for the September period compared with a loss of $387 million in the same period last year.

Disney joined his peers, including Warner Bros. discovery, netflix, Comcast and Paramount Global in adding streaming subscribers over the past quarter.

Disney+ Core subscribers – which exclude Disney+ Hotstar in India and other countries in the region – grew by 4.4 million, or 4%, to 122.7 million. Hulu subscribers grew 2% to 52 million.

Average earnings per spend for domestic Disney+ customers fell from $7.74 to $7.70 as the company had a higher mix of customers on its cheaper, ad-supported tiers and wholesale offerings.

Meanwhile, the company’s traditional TV network business continued to decline as consumers ditch pay-TV packages in favor of streaming. The networks’ revenue fell 6% to $2.46 billion. The segment’s profit fell 38% to $498 million.

The experiences segment, which includes Disney’s theme parks as well as consumer products, saw revenue increase 1% to $8.24 billion.

Domestic parks operating income rose 5% to $847 million, helped by higher guest spending at the parks and cruise lines.

However, operating income in the international parks fell by 32% due to a drop in visitor numbers and guest consumption as well as increased costs.

The company said Thursday it is “confident in the long-term outlook for the company,” and provided an outlook that includes its fiscal years 2025, 2026 and 2027.

Disney expects a “modest decline” in Disney+ Core subscribers in the first quarter of fiscal year 2025 compared to the previous quarter.

Full-year profit in the entertainment streaming industry, which excludes ESPN+, is expected to see an increase of about $875 million compared to the previous fiscal year and to increase by a double-digit percentage in fiscal 2026.

Disney also expects double-digit percentage growth in fiscal 2025 for its entertainment segment.

However, the experience segment is only expected to see a growth of 6% to 8% in the coming financial year compared to the previous year. Disney noted that the fiscal first quarter will see a $130 million hit due to the impact of Hurricanes Helene and Milton, as well as a $90 million impact from Disney Cruise Line’s pre-launch costs.

During Disney’s fiscal year 2025, the company expects high single-digit adjusted earnings growth compared to the previous fiscal year. The company expects double-digit adjusted EPS growth in both fiscal years 2026 and 2027.

This story is in development. Please check back for updates.