Disney Q1 Earnings Beat Expectations, Mixed Results Across Segments
Key Highlights:
* Revenue: $24.70 billion, beating estimates of $24.57 billion
* Adjusted EPS: $1.76, exceeding consensus of $1.42
* Disney+ subscribers decreased by 700,000 in Q1, but analysts expected a decline of 1.41 million
* DTC streaming segment turned a profit of $293 million, continuing three consecutive quarters of profitability
Segment Performance:
* Domestic parks and experiences revenue declined 5%, impacted by hurricanes and cruise ship investments
* Disney entertainment revenue increased 95% due to box office hits
* DTC streaming revenue grew significantly, contributing to improved profitability
Guidance:
* High-single digit EPS growth reaffirmed for fiscal 2025
* Parks operating income predicted to improve in the coming quarters with 6-8% growth expected for full-year 2025
* Streaming profit target of $875 million maintained for fiscal 2025
Succession Planning:
* CEO Bob Iger's successor is expected to be announced in early 2026.