Disney tops earnings estimates as parks and streaming offer a boost

Disney exceeded Wall Street expectations for earnings in its latest quarterly report, with mixed results across segments. The company's parks and streaming divisions propelled earnings, while traditional TV and theatrical releases saw a boost from the success of "Toy Story 5." Revenue for the experiences segment, encompassing theme parks and cruises, grew 10% year over year to $9.97 billion.

Domestic park attendance rose 3%, while per capita spending increased 4%. CFO Hugh Johnston highlighted strong attendance at Walt Disney World in Orlando, contrasting it with lower attendance reported by NBCUniversal's Orlando theme parks. Disney's streaming business, primarily Disney+ and Hulu, saw an 11% revenue increase to $5.53 billion, driven by customer growth, price hikes, and ad revenue.

The overall entertainment segment, including traditional TV and theatrical releases, grew 6% to $11.35 billion. Adjusted earnings per share were $2.06, up from $1.61 last year. Shares of Disney rose 3% in premarket trading. The sports segment, mainly ESPN, saw a 4% revenue increase to $4.5 billion, boosted by subscriber fees and advertising.

ESPN's streaming service and strong TV ratings from NBA and NHL postseasons contributed to this growth. Additionally, Disney received a $100 million tariff refund and plans to shift consumer products to the entertainment unit by fiscal 2027, targeting $9 billion in share repurchases.