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Walt Disney Company (NYSE:DIS) shares jumped about 10% Wednesday morning after the media giant delivered stronger?than?expected full?year guidance, a double beat on Q2 results and higher?than?forecast streaming subscriber growth.
For fiscal 2025, Disney sees adjusted EPS of $5.75 and operating cash flow of $17 billion, versus Bloomberg's consensus of $5.44 and $14.8 billion.
In Q2, Disney+ subscribers rose 1.1% sequentially to 126 million, topping the 123.3 million forecast, while Hulu SVOD users climbed 2.1% to 54.7 million, above the 54.2 million estimate. Disney+ average monthly revenue per paid subscriber increased to $7.77 (est. $7.74) from $7.55 in Q1. Hulu SVOD ARPU dipped to $12.36 (est. $12.29) from $12.52, while Hulu Live TV + SVOD ARPU climbed to $99.94 (est. $100.04) from $99.22.
Entertainment segment revenue rose 9%, driven by a 54% surge in content sales and licensing, offsetting a 13% decline in linear networks and 8% growth in direct?to?consumer. ESPN revenue grew 5% overall, with domestic up 7% and international up 11%. Parks and experiences revenue increased 6%, led by a 9% gain at domestic parks, while international parks fell 5% and consumer products rose 4%.
Net income leaped to $3.40 billion, or $1.81 per share, compared with a $216 million profit, or a $0.01 loss per share, a year ago (which included a $2.05 billion restructuring charge). Adjusted EPS of $1.45 beat the $1.20 consensus, and revenue of $23.6 billion topped the $23.02 billion estimate.
This article first appeared on GuruFocus.