Disney Earnings Beat Estimates Thanks to 'Moana 2' and Streaming Gains

Walt Disney Co. reported fiscal first-quarter results that topped analysts’ estimates, fueled by the blockbuster film Moana 2 and higher income from its streaming services.

Excluding some items, earnings rose to $1.76 a share, Disney said Wednesday in a statement, beating the $1.42 average of analysts’ estimates compiled by Bloomberg. Revenue in the period ended Dec. 28 came in slightly above expectations, increasing 5% to $24.7 billion.

The improved performances of Disney’s streaming operation and film studio led to a 31% gain in operating income for the quarter. Other Disney businesses struggled, with profit from TV networks slumping and theme park earnings little changed.

“Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth,” Chief Executive Officer Bob Iger said in the statement.  The shares were down less than 1% in New York, in line with the broader markets after weak earnings results from some big tech companies.

During the period, Disney raised the price of the Disney+ and Hulu streaming services by as much as 25%. That contributed to earnings of $293 million in the period, compared with a year-ago loss, along with a dip in Disney+ subscribers to 124.6 million accounts. Analysts were predicting a total of 119 million subscribers. In the second quarter, Disney predicts a “modest” sequential decline in Disney+ subscribers.

Chief Financial Officer Hugh Johnston chalked that up to seasonal effects and said consumers don’t seem to be pulling back despite the increased prices.

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