Disney shares rise after profit doubles

Disney Shares (DIS.US) They rose more than 9% after the presentation of the latest quarterly results, largely thanks to the box office success of “Deadpool and Wolverine.” The film’s performance, coupled with record performance from Pixar’s “Inside Out 2,” eased investor fears that Disney was losing its box office magic and boosted the company’s performance since the start of the year, when its profits soared.

In total, Disney recorded a profit of $4.972 million over the past twelve months, up 111% from the previous year, when the company posted a profit of $2.354 million. Additionally, cumulative year sales registered a 3% increase to $91.361 million.

Disney shares are positive

On a quarterly basis, Disney generated net income of $460 million, up 74% from the previous year, when earnings reached $264 million. The company’s revenue rose 6% to $22.574 billion and adjusted earnings per share beat Wall Street estimates. costs $1.14 per title, down from an estimate of $1.09.

The direct-to-consumer segment, which also includes streaming services. Hulu and ESPN+ have become the main growth engine for Disneywith a profit of $321 million during the period. The figure far exceeds Wall Street estimates of $202.9 million in profit and offsets a sharp decline in the traditional television business.

Disney’s streaming business continues to grow the decline of traditional television networks, including ABC and cable channels such as FX and the Disney Channel. The division’s operating profit fell 38% to $498 million. Like other major media companies, Disney is focusing on the future of streaming as consumers continue to unplug.

The company’s current director, Bob Iger, explained that in the US, 60% of new subscribers choose advertising-supported streaming options. Overall, it is estimated that about 37% of subscribers in the US purchase advertising-supported services, compared with 30% worldwide.

For my part, Disney’s theme parks appear to be recovering from the pandemic, improving on a decline seen earlier in the summer as American visitors cut spending. U.S. business rebounded in the three months ended Sept. 28 as visitors spent more money at theme parks and cruises.

Disney is betting big on its experienced business and plansn will invest $60 billion in its theme parks and cruise lines over the next decade. The company expects the division to deliver operating profit growth of 6% to 8% next year and “high single-digit growth” in 2026, driven by the launch of two new cruise ships this year.

Bob Iger returned to Disney after a brief retirement two years ago and launched a massive cost-cutting and restructuring plan. Since then, Disney shares have risen, but their performance has lagged the overall stock market. In total, Disney shares are up more than 12% for the year.