From Morningstar: 2024-11-18 08:26:37

Walt Disney reported a strong finish to fiscal 2024, with positive results in streaming and experiences. The firm’s revenue increased by 3%, and operating profit surged by 21% due to improved performance in the streaming business. Disney expects high single-digit growth in earnings and operating cash flow in 2025, with an increase to double digits the following year.

The company achieved profitability in its direct-to-consumer segment, with $321 million in operating income in Q4. Disney added over 5 million subscribers between Disney+ and Hulu during the quarter, including 2 million in the US. Management anticipates DTC operating income to surpass $1 billion in fiscal 2025, up from $143 million in 2024.

Disney has raised its fair value estimate to $125 per share, reflecting confidence in the company’s evolution for the modern era. The launch of the ESPN streaming service is expected to enhance streaming results, with continued growth in earnings and operating cash flow projected for the coming years. The firm’s overall outlook points towards sustained profitability and growth.



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