Box-office smash ‘Moana 2’ drives Disney profit in the first quarter

Disney easily topped first-quarter expectations thanks in part to the box office success of Moana 2. The Walt Disney Co. earned $2.55 billion or $1.40 per share for the period ended Dec. 28.

The Burbank, California–based company earned $1.91 billion or $1.04 per share in the prior-year period. Stripping out certain items, earnings were $1.76 per share. This topped the $1.44 per share that analysts surveyed by Zacks Investment Research anticipated. Revenue rose five percent to $24.69 billion, surpassing Wall Street’s estimate of $24.66 billion. The Disney+ streaming service had a one percent increase in paid subscribers domestically, which includes the US and Canada. But there was a two percent drop internationally, which excludes Disney+ HotStar. Total paid subscribers for Disney+ dipped one percent in the quarter.

Looking ahead, Disney said that it foresees a modest decline in Disney+ subscribers in the second quarter when compared with the first quarter. The company still anticipates high-single digit adjusted earnings per share growth for fiscal 2025. The Experiences division, which includes six global theme parks, its cruise line, merchandise, and videogame licensing, reported operating income was basically flat at $3.11 billion. Operating income fell five percent at domestic parks as hurricanes caused Walt Disney World to close for a day and canceled a cruise. Operating income rose twenty-eight percent for international parks and Experiences.