Disney Tops Q1 Expectations with 'Moana 2' Success and Strong Park Performance

Disney has surpassed first-quarter expectations, driven by the record-breaking box office performance of its animated film "Moana 2."

Financial Highlights:

* Revenue: $24.69 billion, up 5% YoY
* Earnings per share: $1.76 (excluding one-time items), 32 cents above Wall Street estimates
* Net income: $2.55 billion
* Entertainment revenue: up 9%
* Content sales/licensing and Other revenue: up 34%

Streaming and Direct-to-Consumer:

* Disney+ and Hulu combined operating income: $293 million
* Disney+ domestic paid subscribers: 1% increase
* Disney+ international paid subscribers: 2% decrease
* Total paid subscribers for Disney+: slight decline from last year

Parks and Experiences:

* Operating income: $3.11 billion, flat YoY
* Domestic parks operating income: down 5% due to hurricane closures
* International parks operating income: up 28%

Analyst Commentary:

* "Disney's earnings beat underscores the success of its cost-cutting initiatives and resilient performance in parks and studios," said Jesse Cohen of Investing.com.
* "However, the surprising loss of Disney+ subscribers raises concerns about market saturation and pricing strategy."

Outlook:

* Disney anticipates a modest decline in Disney+ subscribers in Q2.
* The company maintains its forecast of high-single-digit adjusted earnings per share growth for fiscal 2025.