Walt Disney (NYSE:DIS) reported fiscal fourth-quarter earnings that topped estimates, led by growth in its studio division thanks to a strong performance at the box office.
The company reported earnings per share (EPS) of $1.07 on revenue of $19.10 billion. Analysts polled by forecast EPS of $0.95 on revenue of $19.29 billion. That compared to EPS of $1.48 on revenue of $14.31 billion in the same period a year earlier.
The earnings beat was driven by strong performances in its studio and parks businesses.
Studio entertainment revenues for the quarter increased 52% to $3.3 billion and operating income increased 79% to $1.1 billion, led by the success at the box office of its Marvel, Star Wars and namesake franchises.
The parks, experiences and products division, meanwhile, saw revenues for the quarter increased 8% to $6.6 billion and operating income increased 17% to $1.38.
Its direct-to-consumer business more than doubled revenue to $3.4 billion, with operating losses increasing to $740 million from $553 million.
That was below the previous forecast for operating losses to rise to $900 million even as the company ramped up spending to bolster its direct-to-consumer business ahead of the launch Disney+.
Its cable networks grew revenue 20% to $4.2 billion, but operating income fell $19 million to $1.3 billion, pressured by weakness at ESPN.
Broadcasting revenues for the quarter increased 26% to $2.3 billion and operating income decreased 4% to $377 million.
"We’ve spent the last few years completely transforming Disney to focus the resources and immense creativity across the entire company on delivering an extraordinary direct-to-consumer experience, and we’re excited for the launch of Disney+ on November 12," CEO Bob Iger said.
Walt Disney (NYSE:DIS) shares gained 4.6% after hours.
