- Disney beats Q2 estimates with $1.45 EPS and $23.6B revenue, sending shares up 7% in premarket trading.
- Streaming turns profitable with $336M income as Disney+ adds 1.4M subs; Experiences segment grows 9% to $2.5B.
- Company raises FY25 EPS forecast to $5.75 (16% Y/Y growth), reaffirms 6-8% operating income target for parks.
Streaming Momentum Meets Park Power
The Walt Disney Company delivered a rare trifecta for investors: earnings beats, subscriber growth, and raised guidance. The entertainment giant posted $1.45 in adjusted EPS, crushing the $1.20 consensus, while revenue climbed 7% year-over-year to $23.6 billion. The results sent shares soaring in premarket trading as analysts scrambled to adjust targets.
What makes this quarter particularly notable is the simultaneous strength across both digital and physical assets. The direct-to-consumer business, long a money-loser, generated $336 million in income as Disney+ added 1.4 million subscribers. Meanwhile, the Experiences segment - comprising theme parks and cruise lines - saw operating income jump 9% to $2.5 billion.
Raising the Bar
Management didn't just beat expectations - they raised them. Disney now forecasts full-year EPS of $5.75, well above the $5.44 Street estimate and representing 16% annual growth. The company maintained its 6-8% operating income growth target for Experiences, suggesting confidence in continued post-pandemic demand.
"This isn't just a beat - it's a statement," said one buy-side analyst who asked not to be named while his firm updates its models. "They're showing they can grow subs while making streaming profitable, all while parks print money."
The earnings webcast later this morning may provide color on how Disney plans to sustain this momentum, particularly regarding its upcoming ESPN streaming service and potential restructuring efforts. For now, the market's reaction suggests investors believe Bob Iger's second act as CEO is gaining steam.