Disney (DIS) on Thursday reported fiscal fourth-quarter earnings per share and revenue that topped Wall Street estimates, while its direct-to-consumer business built on recent momentum and moved to a profit.
The company reported fourth-quarter adjusted earnings of $1.14 per share, above the $1.10 expected by analysts polled by Bloomberg and higher than the $0.82 Disney reported in the same period last year.
Revenue came in at $22.57 billion, surpassing consensus expectations of $22.47 billion and higher than the $21.24 billion reported in the same period last year.
The stock rose more than 5% in premarket trading immediately after the results.
Disney’s direct-to-consumer (DTC) streaming business, which includes Disney+, Hulu and ESPN+, posted operating income of $321 million for the three months ended September 28, compared with a loss of $387 million in the same period last year.
Analysts polled by Bloomberg had expected DTC’s operating income to be around $203 million after the company achieved its first quarter of streaming profitability in its third-quarter results.
Achieving consistent profits in streaming is critical for Disney and other media giants as more consumers turn to DTC services instead of traditional pay-TV packages.
In mid-October, the company raised the price of its various subscription plans, highlighting a trend that has gained momentum over the past year as media companies look to boost margins on direct-to-consumer (DTC) offerings in the face of increased linear offerings . television is disappointing.
Disney said Thursday it expects DTC operating income of about $875 million in fiscal 2025.
The entertainment giant’s results come as the company looks for a successor to current CEO Bob Iger to navigate a changing industry. A recent report from the Wall Street Journal says the pool of candidates is expanding as the executive is set to leave Disney for a second time at the end of 2026.
Last month, Disney said it plans to announce its next CEO in early 2026, with current Disney board member and former Morgan Stanley (MS) CEO James Gorman taking the reins. He will serve as the company’s new chairman of the board of directors effective January 2, 2025.
One of the concerns of investors who Iger’s successor will inherit is a possible slowdown in Disney’s theme park business.
The parks division’s revenue was slightly ahead of expectations, rising 1% year over year to $8.24 billion.
However, operating income fell short of expectations of $2.31 billion, coming in at $1.66 billion in the quarter, down 6% from the previous year.
This was mainly driven by weak results abroad, with international operating profit down 32% year on year. The company cited a decline in visitors and guest spending during the Paris Olympics and a typhoon in Shanghai.
