Disney reported a 39% increase in adjusted EPS in fiscal Q4, leading to a surge in their stock by 10%. The company beat expectations both on the top and bottom lines, with revenue coming in $80 million above consensus at $22.57 billion. The media and entertainment conglomerate also raised profit guidance for fiscal 2025, with management now expecting high single-digit growth in adjusted earnings per share, as opposed to the initially projected 4% YoY growth.
Despite Disney’s positive earnings results, the overall market, including the Dow Jones Industrial Average, was trading sideways on Thursday. The NASDAQ and S&P 500 also moved sideways to lower, showing a muted reaction to Disney’s earnings news. However, Disney’s stock price had a significant jump following the earnings announcement.
In Q4, Disney’s Entertainment segment saw a strong 14% increase in revenue, contributing to the overall growth in operating income. Sports revenue remained flat, while Experiences revenue grew by just 1% YoY. In 2025, Disney is expecting $15 billion in cash from operations, with plans to allocate $8 billion to capex, $3 billion to share buybacks, and a focus on dividend growth in line with earnings.
Several hedge funds missed out on Disney’s stock surge, as notable names such as Nelson Peltz’s Trian Fund Management and Bridgewater Associates sold off their Disney stakes in Q3. Disney’s stock chart shows a significant increase in price, breaking through key resistance levels, and indicating potential bullish sentiment in the market. The company also expects double-digit growth in adjusted EPS for 2026 and 2027.
Overall, Disney’s strong earnings results and upbeat guidance for future growth have positioned the company for a positive trajectory in the coming years. Despite some market uncertainty, Disney’s stock performance and financial outlook indicate a bright future ahead for the media and entertainment giant. With a focus on expanding their business and increasing shareholder value, Disney remains a key player in the industry with potential for continued success.
