Disney made a significant move on Thursday by providing investors with a rare three-year financial outlook, demonstrating confidence in its future despite economic uncertainties. The company expressed optimism in its investments in park expansions, movie pipeline, and linear television assets, leading to a notable 9% increase in Disney's shares during premarket trading.
In the latest quarter, Disney's net income surged by 74% to $460 million, equivalent to 25 cents per share, bringing its full fiscal year earnings close to $5 billion. The company anticipates a high single-digit rise in adjusted earnings per share for the upcoming fiscal year, with double-digit growth projected for fiscal years 2026 and 2027.
Disney also highlighted its progress in the streaming business, achieving its first profitable quarter in June and witnessing a substantial increase in profits to $321 million in the most recent quarter. The company expects streaming profits to grow by an additional $875 million in the new fiscal year, contributing to overall positive results.
While Disney's cable and broadcast network business faced challenges with a 38% decline in operating profits, the company saw a $725 million revenue increase from content sales, driven by successful films like Deadpool & Wolverine and Inside Out 2 setting box office records.
The rise in Disney's shares is encouraging for shareholders, especially after experiencing a 17% drop from a 52-week high in April and nearly a 50% decrease since 2021 due to the pandemic impact.
