Media and entertainment giant Disney reported its quarterly earnings on Thursday that came above the Wall Street estimates thanks to strong streaming results. The company’s stock rose more than 6% immediately after the results were announced.
Disney’s revenue in the fourth quarter of fiscal 2024 was $22.57 billion, topping the $22.47 billion expected by analysts. It was also above the $21.24 billion in the Q4 of fiscal 2023.
The company also reported $1.14 in adjusted earnings per share compared to $0.82 in the same period last year and $1.10 estimated. Additionally, its operating income climbed to$3.7 billion, marking a 23% year-over-year jump.
Disney significantly benefited from the success of its direct-to-consumer (DTC) segment, which includes streaming service Disney+, Hulu, and ESPN+. The division had $321 million in operating profit versus a $387 million loss in Q4 of 2023 and recorded its second straight quarter of profitability. Its flagship streamer, Disney+, had 122.7 million subscribers at the end of September, 4% more than the previous quarter and above 119.85 million estimated.
Better-than-expected results show the effects of CEO Bob Iger’s recent moves to bring the entertainment giant back to its previous heights after a period of poor performances. Iger employed various cost-cutting moves while also streamlining the company’s Entertainment unit, which saw underwhelming performances in the past year.
“Thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” Iger said in a statement.