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Walt Disney (NYSE:DIS) just delivered a knockout quarter, blowing past Wall Street's expectations with a 44% jump in adjusted earnings per share to $1.76crushing the $1.45 consensus. Revenue climbed 5% to $24.69 billion, thanks to the massive box office success of Moana 2, which soared past the $1 billion mark. But despite the strong numbers, investors weren't entirely convinced. Disney+ is set to shed subscribers after a price hike, and domestic theme park profits took a hit, down 5% due to hurricane disruptions and the cost of launching its latest cruise ship.
The company reaffirmed its forecast for high single-digit earnings growth in 2025solid, but not the upgrade some were hoping for after such a strong start to the year. Disney is sticking to its plan: $15 billion in operating cash flow, $3 billion in stock buybacks, and a continued push into streaming with ESPN's expansion. On deck for the year? Disneyland's 70th-anniversary celebration, a stacked film lineup, and a growing sports strategy. But with Netflix pulling in record streaming subscribers and legacy TV networks continuing to slide, Disney has to keep proving it can evolve.
Shares dipped around 0.7% as of 11.44am today, as the market processed the mixed signalshuge earnings growth but lingering concerns about streaming churn and theme park softness. The entertainment division's profits nearly doubled, but weaker linear TV and cautious guidance took some of the shine off. CEO Bob Iger is leaning into Disney's sports advantage, positioning ESPN's 24/7 coverage as a key differentiator against Netflix's entry into live sports. The big question now: Can Disney sustain this momentum and keep investors on board as it navigates an increasingly complex media landscape?
This article first appeared on GuruFocus.