The Walt Disney Company has reported a robust first-quarter financial performance, with adjusted profits surpassing analyst expectations, largely fuelled by the commercial success of its latest cinematic blockbusters.
Financial Highlights Exceed Forecasts
For the fiscal quarter ending December 27th, Disney posted a profit of $2.4 billion, equating to $1.34 per share. This compares to a profit of $2.64 billion, or $1.40 per share, during the same period the previous year. When adjusted for one-time charges and costs, earnings per share reached $1.63, notably exceeding the $1.57 per share consensus forecast from analysts surveyed by Zacks Investment Research.
Market Reaction and Revenue Figures
In response to the positive earnings report, Disney's shares experienced a 2% increase in pre-market trading on Monday. The Burbank, California-based entertainment giant reported quarterly revenue of $25.98 billion, which was marginally below the Wall Street expectation of $25.99 billion.
Division Performance Breakdown
The company's performance was bolstered by significant growth across key operational divisions. Revenue for Disney Entertainment, encompassing its film studios and streaming services, saw a healthy 7% increase. Meanwhile, the Experiences division, which includes the company's global theme parks, cruise line, merchandise, and video game licensing, reported a 6% rise in revenue.
Strong Operating Income Growth
The Experiences division demonstrated particularly strong profitability, with operating income climbing 6% to reach $3.31 billion. A detailed breakdown shows operating income at domestic parks rose by 8%, while international parks and experiences reported a more modest 2% increase in operating income.
The standout performers driving this financial success were the box-office hits Zootopia 2 and Avatar: Fire and Ash, whose theatrical releases provided a substantial boost to the quarter's results, underscoring the continued strength of Disney's film production and distribution capabilities.
