- Disney reported a 39% increase in adjusted EPS in the fiscal fourth quarter.
- The top and bottom results helped Disney stock rise 10%.
- The Dow Jones is stable as the market trades sideways on Thursday.
- During 2025 and 2026 the company is expected to present a double-digit profit growth rate.
The Disney Company (DIS) could finally be getting out of the woods after soaring 10% on Thursday following strong fiscal fourth-quarter earnings results. However, several famous hedge funds missed out as they sold their stakes in Disney in the third quarter.
Disney beat expectations on both the top and bottom lines, albeit narrowly, but the market cheered the media and entertainment conglomerate’s lofty earnings projection for fiscal 2025. Instead of the 4% year-over-year growth projected for Adjusted EPS in 2025, management said they now expect “high single digits.”
He Dow Jones Industrial Average (DJIA)which includes Disney, is trading slightly higher at the time of writing, while the NASDAQ and S&P 500 are moving sideways lower.
Disney Stock Earnings News
Disney earned $1.14 in adjusted EPS in the fiscal fourth quarter, which ended September 28. This was 3 cents better than the Wall Street consensus and up 39% year over year. Revenue was $80 million above consensus at $22.57 billion, up 6% from the year-ago quarter.
Disney’s results in the fourth quarter are mainly due to its Entertainment segment, which saw its revenue increase 14% year-over-year. Sports revenue, however, remained stable, with experience revenue only growing 1% year-over-year.
Of the $3.66 billion in total operating revenue during the quarter, entertainment generated $1.07 billion, triple the prior-year figure, while sports generated $929 million and experiences contributed $1.66 billion.
In 2025, Disney expects $15 billion in cash from operations. $8 billion will be spent on capex, and $3 billion will go toward share buybacks. Management said the dividend is expected to follow earnings growth.
Additionally, management said double-digit adjusted EPS growth is projected in both 2026 and 2027.
A shame for investors in Nelson Peltz’s Trian Fund Management. Peltz lost his costly battle to hold on to Disney earlier this year and exited his entire position in the company’s stock in the third quarter, according to his hedge fund’s 13F filing disclosed this week. Additionally, mega hedge fund Bridgewater Associates also exited its large position in Disney during the quarter.
Disney Stock Chart
Disney stock catapulted above the $107.43 price level that has been important as both support and resistance since February. The price level could now become support at this point, although bulls will focus on the long-term importance of the $118 level, as well as the $123.50 level that took down a rally earlier this year.
A good sign is that the 50-day SMA has crossed above its 100-day counterpart. This means that the days of the downtrend that began in July when the 200-day SMA slipped above the 50-day SMA may be coming to an end.
Disney stock is quite overbought on Thursday with its Relative Strength Index (RSI) hitting 85, well above the 70 threshold. As many traders have taken profits on Thursday morning, traders will be watching to see where Disney’s price settles. shares before attempting to reach the daily high of $114.81.
DIS Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
