From Nasdaq: 2024-11-19 11:59:00

Disney reported a strong Q4 performance for fiscal 2024, with adjusted earnings of $1.14 per share beating estimates by 4.59% and a 39% year-over-year increase in revenues to $22.5 billion. The company’s direct-to-consumer segment turned a profit, with Disney+ reaching 122.7 million paid subscribers.

The Entertainment division excelled, with operating income soaring to $1.1 billion, driven by blockbuster releases. However, the Parks division saw mixed results, with revenue up 1% but a 5.7% decline in operating income due to challenges in international segments.

Disney projects high-single digit EPS growth for fiscal 2025, supported by a $3 billion stock repurchase plan. Despite competition and financial concerns, the company aims for double-digit EPS growth through 2027. Analysts forecast a 4.01% revenue growth and 7.65% earnings growth for fiscal 2025.

Disney faces challenges from streaming rivals and financial pressure, reflected in a projected modest growth in Disney+ Core subscribers and declining Linear Networks revenues. Concerns also arise from the company’s substantial borrowing and stretched valuation.

For investors, Disney’s strong streaming and content performance support holding positions. However, caution is advised due to challenges in international park operations and expected subscriber declines. New investors may want to wait for a more attractive entry point as Disney navigates short-term obstacles.



Read more at Nasdaq: Disney’s Q4 Earnings Surpass Estimates: How to Play the Stock