Disney's quarterly earnings exceed prospects increased by streaming, movie success
(MENAFN) On Wednesday, Walt Disney Co. announced quarterly earnings that exceeded Wall Street projections, driven largely by the strong performance of the "Inside Out" sequel. This success in the animated film sector helped counterbalance a decline in profits from its theme parks. In response to the positive earnings report, Disney's shares rose approximately 3 percent in pre-opening trading.
During the April to June period, the operating income from Disney's entertainment segment, which includes its streaming services such as Disney+, Hulu, and ESPN+, nearly tripled. This marked a significant milestone as these streaming platforms reported profits for the first time. However, the company's activities segment, encompassing theme parks and consumer products, which contribute just over half of Disney's total profits, experienced a 3 percent decline in operating income.
Disney's adjusted earnings per share for the fiscal third quarter came in at USD1.39, surpassing analysts' expectations of USD1.19, according to data from the London Stock Exchange Group. The company's revenue also saw a 4 percent increase, reaching USD23.2 billion, which slightly outpaced the anticipated USD23.1 billion. These results underscore Disney's ability to leverage its diverse entertainment portfolio to maintain financial stability and growth despite challenges in certain segments.
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