The Walt Disney company logo is displayed on the floor of the New York Stock Exchange during morning trading on December 01, 2023 in New York City. Stocks opened lower a day after the S & P and Dow Jones closed on their best day of the year with the Dow Jones rising 1.5%, or more than 500 points, a new closing high for 2023. (Photo : Michael M. Santiago/Getty Images)
Disney surpassed analyst expectations in its fiscal third-quarter earnings report, driven by a notable achievement in its streaming segment.
CNBC shared that the company announced a profit for its combined streaming services-Disney+, Hulu, and ESPN+-for the first time, marking an earlier-than-anticipated milestone. The company reported earnings per share of $1.39, surpassing the expected $1.19, and revenue of $23.16 billion, slightly above the $23.07 billion forecast.
The success of Disney's streaming services was a major highlight, with the combined unit posting an operating profit of $47 million compared to a loss of $512 million in the same quarter last year. This improvement came ahead of the company's earlier guidance, which had projected such profitability by the fourth quarter.
Despite this success, the direct-to-consumer streaming segment, excluding ESPN+, still reported a loss of $19 million.
However, Disney's parks and experiences segment faced challenges due to lower consumer demand and inflation. Revenue for this segment increased by 2% to $8.39 billion, but operating income from US parks decreased by 6% even after a massive $60 billion investment, per VCPost.
The company attributed this decline to rising costs related to inflation, technology investments, and new guest offerings. This downturn follows a trend from the previous quarter, when Disney's domestic parks also saw lower profits.
Regardless, Disney's earnings report reflects a strong performance in its entertainment and sports divisions, with a 19% increase in total segment operating income to $4.23 billion.