The Walt Disney Co. (DIS) released earnings early on Thursday and continues a strong rebound in recent weeks.
DIS – Daily Chart
The price of DIS stock touched lows in August and recovered to a price of $102.72. A recent break above the uptrend resistance line opened a path to the $105.85 level and the pre-market price for Disney was up 11%. The previous high for the company is around the $124 level.
The return of previous CEO Bob Iger has boosted the outlook for Disney with stronger cash flow and revenue. The entertainment giant reported revenue of $22.57 billion, up from $21.2 billion last year and narrowly above the $22.5 billion analysts expected. “The House of Mouse” said net income was $460 million, or $0.25 cents per share, which was below estimates of $1.74 billion, or $0.96 per share.
However, when accounting for around $1.5 billion in one-time restructuring charges, Disney’s adjusted earnings per share (EPS) came in at $1.14.
Disney’s streaming business was profitable again with an operating profit of $253 million after posting a profit for the first time last quarter. Chief Executive Officer Iger said Disney expects the services to “grow nicely in fiscal 2025”.
The company’s Experiences segment, which includes theme parks and cruise ships, was $8.24 billion, up slightly from $8.16 billion last year as consumers spent less on discretionary items due to economic constraints.
Iger is set to leave the company in 2026 and investors will keep that in mind as the turnaround plan continues to boost profitability.
