🎬 Disney exceeds expectations and shows the power of its strategy!
Disney $DIS has released results for the latest quarter that show the bet on streaming is bearing fruit. The company reported adjusted earnings per share of $1.14, beating analysts' expectations, and revenue rose to $22.57 billion, up 5 % from the previous year. 📈
Shares respond by rising more than 10%!
In the spotlight is the live streaming division (DTC), which includes popular services such as Disney+, Hulu and ESPN+. This area made an operating profit for the three months of $321 million for the three months, a huge jump from last year's loss 387 million. The growth is partly a credit to price increases on several plans, reflecting a broader trend of media companies trying to boost margins even in a downturn in linear TV packages. Streaming service Disney+ has gained almost 4.5 million new subscribers, with a total of more than 120 million.📺
Disney estimates that in the year 2025 will achieve operating income from DTC approximately USD 875 million. The company is thus successfully building its streaming portfolio on a solid financial foundation. And it is this development that will be key to the entertainment giant's continued transformation into a digital leader.
But the company is not forgetting its roots either - Disney Parks, which are a key part of its revenue, generated revenues of USD 8.24 billion, which equates to a slight year-on-year growth of 1 %. Still, international markets faced a revenue decline of 32 %, a challenge for the future growth of this division. 🎡
Disney CEO also highlighted the success of the animated family film Inside the Head 2 and the superhero movie Deadpool & Wolverine. Both feature-length titles contributed significantly to the operating profit growth of the entire entertainment division.
In 2025 Disney plans a $3 billion share buyback , dividend growth tied to earnings growth and "high single digits" earnings per share growth. By 2026, the company expects double-digit growth, which brings optimism for investors looking for stability and perspective. 📊
Meanwhile, the search is underway for a new CEO, who is expected to replace Bob Iger in the year 2026. Leading the candidates is now board member and former CEO of Morgan Stanley, James Gorman. The change in leadership will be essential for the company to keep pace with market dynamics and expand its position in both streaming and traditional entertainment.
Overall, it looks like Disney has a well thought out strategy to adapt its business to new conditions and trends in the entertainment industry.
What is your opinion of Disney? Do you see room for further growth?
The results were very positive, but he still stands by the fact that $NFLX is better and there is no point in buying other stocks in this sector.
The results were great. I have their shares in my portfolio and I must say that the current profit makes me happy.
Great company, but I'm thinking of selling part of the position and taking a profit.
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I see room for growth there. I don't own the stock and won't be buying it, but for someone with a larger portfolio, sure why not buy a few shares at a good price.