Disney’s stock is on the rise, thanks to impressive box office hits, increased streaming revenue, and record-breaking performance in its parks and experiences division. Here’s a look at how Disney achieved one of its strongest quarters yet.
The Walt Disney Company recently reported a major upswing in its fourth-quarter earnings for 2024, with shares surging over 9% after a stellar performance at the box office and renewed profitability in streaming. Total revenue for the quarter reached $22.6 billion, a 6% increase from last year, while net income soared to $460 million, up from $264 million. These results, combined with Disney’s ongoing investments in parks and experiences, have investors optimistic about the company’s future.
Marvel, Pixar, and Streaming Powerhouse
Disney’s entertainment division benefited greatly from the box office success of Deadpool & Wolverine and Pixar’s record-breaking Inside Out 2, which helped boost earnings by 39% year-over-year. Bob Iger, Disney’s CEO, celebrated this achievement, calling it “one of the best quarters in the history of our film studio.” These hit films eased investor concerns about Disney’s film business and reinforced confidence in the company’s creative momentum.
In streaming, Disney+ and Hulu saw a combined $253 million in operating profit, while the addition of ESPN+ brought total streaming operating income to $321 million. This marks a significant turnaround from last year’s $387 million streaming loss, reflecting Disney’s success in cost-cutting and revenue growth strategies within its direct-to-consumer services. The gains in film and streaming profits also helped offset some declines in Disney’s traditional television business.
Parks and Experiences Division Thrives Despite Challenges
Disney’s parks and experiences division remains a core strength, posting a record $8.24 billion in revenue for Q4. U.S. parks, including Walt Disney World and Disneyland, performed well, with increased guest spending on dining, merchandise, and experiences. Internationally, however, parks like Disneyland Paris and Shanghai Disney saw slower performance, somewhat tempering the division’s overall growth.
To meet growing demand, Disney is investing heavily in its experiences division, with plans to invest $60 billion over the next decade in parks and cruise lines. Disney expects this segment to drive operating income growth of 6% to 8% in 2025 and “high single-digit growth” in 2026, bolstered by the launch of two new Disney cruise ships. These expansions reflect Disney’s commitment to maintaining a robust experiences business and meeting rising guest expectations.
Financial Highlights and Shareholder Moves
For Q4, Disney posted adjusted earnings of $1.14 per share, surpassing Wall Street’s forecast of $1.09. The strong quarterly results led to a 9% rise in pre-market trading, signaling investor confidence. Additionally, Disney announced a $3 billion share repurchase plan set for 2025 and committed to growing dividends in line with earnings.
Bob Iger, who returned as CEO in 2022 after a brief retirement, has implemented a series of cost-cutting measures and a major restructuring, actions that have helped Disney regain footing. While Disney’s stock performance has improved since Iger’s return, it remains behind the broader market.
A Promising Future for Disney’s Content and Experiences
Looking ahead, Disney is gearing up for a strong holiday box office season with anticipated releases like Moana 2 and Mufasa: The Lion King. Disney’s Chief Financial Officer Hugh Johnston emphasized the importance of Disney’s creative resurgence, stating, “Creativity is very much back on track for Disney, which is obviously the biggest value creator for us because of the way it plays through the rest of the company.”
Disney’s experiences division, too, remains an area of focus, with plans to boost attendance and guest spending in 2025. The $60 billion investment aims to create new attractions, expand cruise options, and continue innovating within Disney’s parks, ensuring guests can enjoy immersive, updated experiences for years to come.
Sources: WDWNT, Financial Times
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