Disney Q1 Earnings Beat Expectations, Despite Streaming Subscriber Drop
Key Financial Highlights:
* Revenue: $24.70 billion (beats expectations of $24.57 billion)
* Adjusted EPS: $1.76 (surpasses estimate of $1.42)
* Earnings per share: 44% increase year-over-year
* Disney+ Subscribers: 700,000 decline, lower than expected 1.41 million
* Operating income:**
* Domestic parks and experiences: -5%
* Entertainment: 95%
* Direct-to-Consumer (DTC): $293 million profit (previously $138 million loss)
Mixed Segment Performance:
* Domestic parks impacted by hurricanes and cruise line pre-opening expenses.
* Entertainment sector boosted by box office hits like "Mufasa" and "Moana 2."
* DTC streaming business remains profitable, reporting a $293 million profit.
CEO Succession and Outlook:
* Company expects further modest decline in Disney+ subscribers in Q2.
* Reaffirms guidance of high-single digit EPS growth for fiscal 2025.
* Continues to target $875 million in streaming profits by 2025.
* CEO succession remains underway, with a new chief to be announced in early 2026.