Walt Disney raised its outlook for the fiscal year after rising prices for its streaming services and rising attendance at theme parks in the U.S., pushing revenue to Wall Street expectations for the latest quarter.
The performance of its streaming and U.S. park business helps offset Disney's controversial tedious results snow White Remake, but also recommends that consumer spending remain relatively resilient in the first three months of 2025.
Disney predicted outstanding performance on Wednesday for the rest of its entertainment, sports and theme park business, but warned that “uncertainty remains in the business environment” as the problem lies in the market with the impact of Donald Trump’s tariff policies.
Still, Disney has raised several of its guidance metrics, and CEO Bob Iger said: “Overall, we are optimistic about the direction of the company and the outlook for the rest of the fiscal year.”
The entertainment giant said Wednesday it is expected to report adjusted earnings of $5.75 per share for its fiscal year, which will end in September. That's 16% higher than in 2024, surpassing Wall Street's expectations of $5.43 per share, and a forecast of "high unit" growth three months ago.
Disney expects its business to provide cash to $17 billion this fiscal year, $20 billion higher than February's forecast and up from Wall Street's forecast of $14.7 billion. The group also raised its operating income growth outlook in its sports sector to 13% three months ago.
Disney lost $32.8 billion in net income in the second quarter from losses a year ago, beating Wall Street's expectations at $18.8 billion, with revenue rising 7% to $23.6 billion. Adjusted EPS increased 20% from 12 months ago and was high at $1.20 per share.
Despite recent concerns about tight belts for American consumers, Disney performed well in theme parks in Florida and California, with revenues up 9% from the same period last year. Customer spending in U.S. parks rise, while cruise industry grows after launch Disney Treasure Shipping in early 2025.
In its international market, attendance rates at Shanghai Disney Resorts and Hong Kong Disneyland have declined.
Disney+ prices rose, with Hulu rising by 8% from a year ago, although the company said the current price of subscribers is only expected to increase “moderately”. The two services combined to approximately 1.8 million subscribers.
Management retains guidance on growing operating income for the fiscal year in Disney's experience division, including its theme parks and recreation divisions.
Disney's shares have fallen more than 17% so far this year.