After what has been a challenging year for Disney, driven by its streaming business struggling to achieve profitability and its theme parks experiencing a slowdown, there were positive signs for investors as the entertainment and experiences giant’s Q4 2024 earnings report* exceeded analysts’ expectations.
In its quarterly results for the three months to 28th September, the entertainment giant report reported revenues of $22.57 billion, slightly ahead of predictions, while adjusted earnings per share jumped 39% Year-over-Year to $1.14, beating forecasts of $1.10.
These strong earnings results, coupled with the company providing a positive outlook for its fiscal 2025, saw Disney’s share price surge.
Disney’s latest earnings report did not disappoint – you could say that the entertainment and experiences giant brought the magic back. That’s because it delivered exactly what investors were hoping for – a clear sign that Disney’s strategy is in fact working.
The biggest buzz is around the company’s streaming success. Disney’s direct-to-consumer streaming divisions, which includes Disney+, Hulu, and ESPN+, turned an operating profit of $253 million, blowing past the expected $131 million. This is a major turnaround for a segment that has struggled in the past and a positive signal for its growth trajectory, with profitability projected to triple in 2025.
At the box office, Disney also delivered strong results with hits like Deadpool & Wolverine, which earned $1.3 billion globally, and Inside Out 2. These successes, combined with a record-breaking 60 Emmy wins, reinforce the firm’s ability to lead in both theatrical and streaming content.
Looking ahead, Disney is projecting high single-digit earnings growth for 2025 and double-digit growth in subsequent years. With plans to increase dividends and a $3 billion stock buyback program, the company is making it clear that shareholder value is a top priority.
The market responded strongly, with Disney’s stock jumping 10% on the news. The results show Disney’s cost-cutting efforts, coupled with strategic investments, are creating a sustainable path forward. Investors are clearly optimistic that this marks the start of a new phase of growth for the company.
