Disney’s Long-Term Growth Story: Impressive Q4 Results
The Walt Disney Company’s latest earnings report shows strong momentum in its streaming services, with Disney+ and Hulu subscriptions reaching 174 million by the end of Q4. Disney+ gained 4.4 million paid subscribers, bringing its core user base to over 120 million, resulting in a solid quarter for subscriber growth. Meanwhile, the parks and experiences segment delivered steady growth, with a 1% revenue increase showing resilience against the hurricane. Disney’s 6% - 8% growth guidance for 2025 in this segment signals consistent contributions from parks, although analysts agree that streaming remains Disney’s most critical growth driver moving forward.
Key Financial Metrics
In the fourth quarter of the 2024 fiscal year, The Walt Disney Company reported the following key financial metrics:
● Revenue: $22.57 billion, a 6% increase from the comparative quarter in the year prior.
● Operating Income: $3.65 billion, up 23% year-over-year.
● Net Income: $460 million, or $0.25 per diluted share, representing a 79% increase from $0.14 in the same quarter last year.
● Earnings Per Share (EPS): $1.14, a 39% rise compared to $0.82 in the previous year.
● Free Cash Flow: $4.03 billion, an 18% increase from the year prior in the same quarter.
Analyst Expectations
The share price is approaching the April high of $122.40 after surging over 12% since Thursday. Analysts remain optimistic about Disney’s stock, with several raising their price targets due to its long-term growth potential. Guggenheim’s Michael Morris raised his target from $110 to $130. Goldman Sachs’ Michael Ng highlighted Disney’s impressive three-year outlook and theme park recovery, adjusting his target from $125 to $135. While Macquarie’s Tim Nollen maintained a neutral rating due to valuation concerns, he acknowledged that Disney’s detailed guidance offers a clearer path to profitability. The overall sentiment among analysts reflects confidence in Disney’s strategy to transition to streaming while growing its core businesses.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
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