Disney Stock Rips On Q2 Earnings Beat, Bullish FY25 Forecast: CEO Bob Iger Says There’s A ‘Lot More’ To Look Forward To

The company also posted a surprise increase in Disney+ subscriber count by 1.4 million during the quarter.

Entertainment giant Walt Disney Co.’s (DIS) stock soared over 7% in Wednesday’s pre-market trading session as the company’s second quarter (Q2) earnings surpassed Wall Street expectations.

Disney posted earnings per share (EPS) of $1.45 during the quarter, higher than the expected $1.21 and surpassing the $1.21 reported during the same period a year ago.

The company’s Q2 revenue stood at $23.62 billion, higher than Wall Street’s expectations of $23.09 billion and up from the $22.08 billion in the year-ago period.

Disney has topped Wall Street’s earnings expectations in the past five consecutive quarters, while it missed revenue expectations in one quarter.

The company also posted a surprise increase in the subscriber count of its streaming service, Disney+, by 1.4 million in the quarter. Disney had previously said it expected Disney+ subscribers to decline during the quarter.

At the end of Q2, total Disney+ subscribers stood at 126 million.

Disney CEO Bob Iger expressed optimism about the firm’s prospects for the rest of fiscal year 2025.

“Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment,” he said.

While titles like ‘Snow White’ and ‘Captain America: Brave New World’ did not perform well, Disney banked on ‘Mufasa: The Lion King’ and ‘Moana 2’ from content sales and licensing.

Disney’s entertainment segment revenue rose 9% year-on-year (YoY) to $10.68 billion, while sports segment revenue grew 5% to $4.53 billion.

The company expects its fiscal year 2025 EPS to be $5.75, ahead of a Wall Street consensus of $5.44. It also expects a “modest” increase in Disney+ subscribers in the third quarter.

Disney’s stock has tumbled 17% year-to-date and 12% over the past year.

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