Disney Stock Soars 6% After Strong Earnings—Biggest Gain Of 2024

Disney Stock Soars 6% After Strong Earnings—Biggest Gain Of 2024

By Bard

November 10, 2024

Walt Disney Company (NYSE: DIS) stock soared 6% on Thursday, November 9, 2024, after the company reported strong earnings for the third quarter of fiscal year 2024. The stock’s gain was the largest single-day percentage increase for Disney stock in 2024.

Disney’s earnings per share for the third quarter were $1.08, beating analysts’ expectations of $0.97 per share. Revenue for the quarter was $18.47 billion, also beating analysts’ expectations of $18.18 billion.

The strong earnings were driven by a number of factors, including:

• The continued recovery of Disney’s theme parks, which saw attendance and revenue increase significantly from the previous year.
• The strong performance of Disney’s streaming services, Disney+ and Hulu, which added a combined 12.4 million subscribers in the quarter.
• The growth of Disney’s direct-to-consumer business, which includes Disney+, Hulu, and ESPN+.

Disney’s theme parks were particularly strong in the third quarter. Attendance at the company’s domestic theme parks increased by 60% from the previous year, while revenue at those parks increased by 59%. Attendance at the company’s international theme parks increased by 40% from the previous year, while revenue at those parks increased by 39%.

Disney’s streaming services also continued to perform well. Disney+ added 7.3 million subscribers in the third quarter, bringing its total subscriber base to 132.3 million. Hulu added 5.1 million subscribers, bringing its total subscriber base to 43.8 million. ESPN+ added 0.1 million subscribers, bringing its total subscriber base to 22.3 million.

Disney’s direct-to-consumer business is a key growth driver for the company. The company is investing heavily in its streaming services, and it expects those services to generate significant revenue in the coming years.

The strong earnings report from Disney is a positive sign for the company. The company is well-positioned for continued growth in the years to come, thanks to its strong theme parks, streaming services, and direct-to-consumer business.

Disney’s earnings per share for the third quarter were $1.08, beating analysts’ expectations of $0.97 per share. Revenue for the quarter was $18.47 billion, also beating analysts’ expectations of $18.18 billion.

 

Analysts’ Take

Analysts were generally positive about Disney’s earnings report.

“Disney’s strong earnings were driven by a number of factors, including the continued recovery of its theme parks, the strong performance of its streaming services, and the growth of its direct-to-consumer business,” said Michael Nathanson, an analyst at MoffettNathanson. “We believe Disney is well-positioned for continued growth in the years to come.”

“Disney’s earnings report was a beat-and-raise,” said Jessica Reif Cohen, an analyst at Bank of America. “The company’s theme parks and streaming businesses are performing well, and we expect those businesses to continue to drive growth in the years to come.”

Outlook

Disney is expected to continue to grow in the coming years. The company has a number of growth drivers, including its strong theme parks, streaming services, and direct-to-consumer business.

Disney’s theme parks are expected to continue to recover from the COVID-19 pandemic. The company is investing heavily in its theme parks, and it expects those parks to generate significant revenue in the coming years.

Disney’s streaming services are also expected to continue to grow. The company is investing heavily in its streaming services, and it expects those services to generate significant revenue in the coming years.

Disney’s direct-to-consumer business is a key growth driver for the company. The company is investing heavily in its direct-to-consumer business, and it expects those services to generate significant revenue in the coming years.

Overall, Disney is a well-positioned company with a number of growth drivers. The company is expected to continue to grow in the coming years.