Disney stock rises as earnings beat market expectations
Last updated: 10:39 07 May 2025 EDT, First published: 03:39 07 May 2025 EDT
Shares in Walt Disney Co (NYSE:DIS, ETR:WDP) were up over 10% on Wednesday morning after reporting second-quarter results that exceeded Wall Street expectations.
Moreover, the Mouse House upgraded its full-year earnings forecast.
Revenue for the three-months was up 7% year-on-year, to US$23.62 billion, and adjusted earnings per share climbed 20% to US$1.45.
Operating income from Disney’s direct-to-consumer streaming unit, which includes Disney+ and Hulu, reached US$336 million.
Disney+ added 1.4 million subscribers to reach 126 million, a notable boost because Wall Street analysts forecast a decline.
Elsewhere, the US-based theme parks – part of the Disney Experiences division – achieved a 13% hike in operating income, driven by higher spend per guest.
The Experiences division was also boosted by the launch of the Disney Treasure cruise ship.
Stronger performance in streaming and theme parks helped offset softness in some international markets, and a decline in sports-related business.
Disney raised its fiscal 2025 adjusted earnings guidance to US$5.75 per share, which would mark a 16% improvement year-on-year, and compares to a previous target of ‘high single-digit growth’.
“Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment,” said chief executive Bob Iger.
“Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
In a separate statement, Disney announced plans to build a new international theme park – its seventh major park – through a partnership with Abu Dhabi’s state-owned destinations company Miral.
The new Disney park will be built by Miral, alongside Disney ‘Imagineers’, on Abu Dhabi’s Yas Island.
Disney said the new park will offer 'signature Disney entertainment' along with themed accommodations, unique dining and retail experiences, and "storytelling in a way that celebrates both the heritage of Disney and the futuristic and cultural essence of Abu Dhabi."
“Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati – an oasis of extraordinary Disney entertainment at this crossroads of the world that will bring to life our timeless characters and stories in many new ways,” Bob Iger commented.
