By Dawn Chmielewski and Lisa Richwine
LOS ANGELES (Reuters) – Walt Disney reported earnings that topped Wall Street’s estimates on Thursday, propelled by blockbuster ticket sales from the rude and irreverent summer Marvel film “Deadpool & Wolverine,” and provided an upbeat forecast for the coming year.
The company projected adjusted earnings-per-share percentage growth in the high single digits in fiscal 2025, even with capital expenditures of roughly $8 billion. It also said it expects to buy back $3 billion worth of stock.
The entertainment giant’s recent success at movie theaters helped offset a decline in operating income at the company’s Experiences and Sports divisions. Lower attendance at international locations dragged on theme parks results, and higher programming and production costs hurt ESPN.
Disney reported adjusted per-share earnings of $1.14 for its fiscal fourth quarter that ended in September. That compares with consensus estimates of $1.10 per share, according to analysts polled by LSEG.
Revenue reached $22.6 billion, slightly ahead of Wall Street forecasts of $22.45 billion. Operating income rose 23% from a year earlier to nearly $3.7 billion.
Chief Executive Bob Iger, who returned to the company from retirement in November 2022, undertook aggressive cost-cutting and worked to revitalize the company’s film and TV units after a period of misfires.
“Thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” Iger said in a statement.
Operating income at the Entertainment unit, which includes film, television and streaming, more than doubled to $1.1 billion in the quarter, reflecting the return of Hulu’s Emmy-nominated comedy “Only Murders in the Building” and summer movies including “Deadpool & Wolverine,” the first R-rated Marvel film, and “Alien: Romulus.” The “Deadpool” movie brought in $1.3 billion at global box offices.
Disney’s flagship streaming video service, Disney+, boasted more than 122.7 million subscribers outside of India, a gain of 4.4 million from the prior quarter. The company intensified efforts to crack down on password sharing in September.
Disney+, Hulu and ESPN+ produced operating profit of $321 million for the quarter, marking the streaming services’ second straight quarter of profitability.
Disney’s Experiences segment that includes parks and consumer products declined 6% to $1.66 billion.
