Why Disney Stock Is Moving Higher Thursday

Walt Disney Co DIS shares are trading higher Thursday on the heels of the company's fiscal fourth-quarter financial results. Here's a look at the key metrics from the quarter. 

Q4 Earnings: Disney said fourth-quarter revenue increased 5% year-over-year to $21.24 billion, which missed the consensus estimate of $21.33 billion, according to Benzinga Pro. The company reported earnings of 82 cents per share, which beat estimates of 70 cents per share. 

Entertainment revenue was up 2% year-over-year, Experiences revenue was up 13% and Sports revenue came in flat.

Disney+ added nearly 7 million core subscribers in the fourth quarter. The streaming service had 46.5 million domestic (U.S. and Canada) subscribers at the end of the quarter, up 1% sequentially. International subscribers, excluding Hotstar, were up 11% sequentially. 

Disney had 26 million ESPN+ subscribers at the end of the quarter, up 3% sequentially. Hulu had 48.5 million subscribers, which was flat quarter-over-quarter. 

The company expects its combined streaming businesses to reach profitability in the fourth quarter of 2024. 

"Our results this quarter reflect the significant progress we've made over the past year. While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again," said Bob Iger, CEO of Disney.

Iger noted that Disney is on track to achieve roughly $7.5 billion in cost reductions for the year, up from a previous forecast of $5.5 billion. 

Check This Out: Bob Iger On ESPN, Streaming, Hollywood Strike: Post Q4 Earnings Comments, Highlights From Conference Call

What's Next: On the conference call, Disney announced that ESPN Bet is slated for launch next week. The company also noted that it plans to recommend that the board declare a dividend by the end of this calendar year. 

"As we look forward, there are four key building opportunities that will be central to our success: achieving significant and sustained profitability in our streaming business, building ESPN into the preeminent digital sports platform, improving the output and economics of our film studios, and turbocharging growth in our parks and experiences business," Iger said.

"We have already made considerable advancements in these four areas and will continue to move forward with a sense of purpose and urgency."

DIS Price Action: Disney shares were up 4.26% at $88.11 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.