Walt Disney reported earnings that topped Wall Street estimates on Thursday, driven by blockbuster ticket sales for the crude and outrageous summer Marvel movie. “Deadpool and Wolverine,” And provided an encouraging forecast for the coming year.
The company projected adjusted earnings-per-share percentage growth in the high single digits in fiscal 2025, even with capital expenditures of about $8 billion.
It also said it expected to buy back $3 billion worth of stock.
Disney shares jumped 10.2% to $113.17, its highest share price in six months.
The entertainment giant’s recent success in movie theaters helped offset declines in operating income at the company’s experience and sports divisions.
Low attendance at international venues hurt the theme park’s results, and high programming and production costs hurt ESPN.
Disney reported adjusted per-share earnings of $1.14 for its fiscal fourth quarter, which ended in September. That compares with a consensus estimate of $1.10 per share, according to analysts surveyed by LSEG.
Revenue reached $22.6 billion, slightly ahead of Wall Street’s forecast of $22.45 billion.
Operating income rose 23% from a year earlier to nearly $3.7 billion.
Chief Executive Bob Iger, who returned to the company from retirement in November 2022, has aggressively cut costs and worked to revive the company’s film and TV units after a period of setbacks.
“We have emerged from a period of considerable challenge and disruption,” Iger told investors. “We are well positioned for growth.”
Disney said last month that it would name it New chief in early 2026,
The new boss replaces Iger, who returned to the company to take the top job after the board fired its CEO.
As peers like Warner Bros. Discovery, CEO David Zaslav predicted that the incoming Trump administration will usher in a wave of media consolidationIger said Disney does not need to make more deals to expand its entertainment portfolio.
Its 2019 acquisition of 21st Century Fox brought a collection of assets that boosted Disney’s record Emmy awards haul, the successful “Avatar” film franchise and control of the Hulu streaming service.
“We have, in many cases, already consolidated,” Iger said. “Basically to thrive in a disruptive media world, we don’t really need more assets right now from a distribution or content perspective.”
Disney CFO Hugh Johnston said that Disney considered the same idea, then rejected it, Divestment of its television assetsAs Comcast said it is currently considering it.
Johnston said, “As I went through the math… it was very clear to me that Disney had no chance at valuation.” “I can’t talk to other companies.”
Operating income at the entertainment unit, which includes film, television and streaming, more than doubled in the quarter to $1.1 billion, helped by the return of summer movies including Hulu’s Emmy-nominated comedy “Only Murders in the Building” and “Deadpool & Wolverine.” Reflects. The first R-rated Marvel film, and “Alien: Romulus.” The “Deadpool” movie grossed $1.3 billion at the global box office.
Disney+, Disney’s flagship streaming video service, has more than 122.7 million subscribers outside India, up 4.4 million from the previous quarter.
The company has intensified efforts for this Ban on password sharing in September,
Disney+, Hulu and ESPN+ made an operating profit of $321 million for the quarter, marking the streaming services’ second consecutive quarter of profitability.
Iger said Disney will add an ESPN tile to its Disney+ streaming service on Dec. 4 as it prepares for the flagship sports network to launch streaming next fall. It will also offer new features such as live sports and commentary as well as sports betting.
In the future, he said, it could also use artificial intelligence to customize the viewing experience, which would offer a personalized version of SportsCenter.
“It will be designed to serve consumers in the most brilliant way ESPN has ever done,” Iger said.
Operating income at Disney’s Experiences segment, which includes parks and consumer products, declined 6% to $1.66 billion.
The company reported a 32% decline in operating income at international parks, reflecting the costs of building new attractions and competition from the Olympics in Paris.
At the sports unit, which includes ESPN Networks and the Star India business, operating income fell 5% to $929 million.
ESPN experienced high programming and production costs for college football broadcasts.
For the full year, domestic operating income is up 6% from 2023, with performance driven by double-digit advertising revenue growth.
In addition to fiscal 2025 estimates, Disney said it expects double-digit adjusted EPS growth in fiscal 2026 and 2027.
Disney CFO Hugh Johnston said in an interview, “If you add it all up, our strategies are working, working very well, and we have good visibility into where those strategies are going to take us.” Can go.”
