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Jun 29, 2024
Disney Q3 2024 Earnings Report
Disney's Q3 2024 earnings showcased strong financial performance driven by growth in the Entertainment segment and profitability in combined streaming businesses.
Key Takeaways
Disney reported a strong third quarter with revenues increasing to $23.2 billion and adjusted EPS growing by 35%. The Entertainment segment saw significant operating income growth, and the combined streaming businesses achieved profitability ahead of schedule. Experiences segment faced moderation of consumer demand.
Total segment operating income increased by 19% and adjusted EPS grew by 35% year over year.
Entertainment segment operating income nearly tripled due to improved results in Direct-to-Consumer and Content Sales/Licensing.
Combined streaming businesses achieved profitability for the first time, one quarter ahead of guidance.
Experiences revenue increased by 2%, but operating income decreased by 3% due to moderation of consumer demand.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Disney anticipates continued improvement in streaming profitability and is focusing on cost savings. They expect Disney+ Core subscribers to grow modestly in Q4. However, they foresee potential impacts from demand moderation in the Experiences segment.
Positive Outlook
- Full year adjusted EPS growth target is now 30%.
- Combined streaming businesses profitability is expected to improve in Q4, with both Entertainment DTC and ESPN+ expected to be profitable.
- Expect profitability in Q4 to look roughly similar to Q3, and we expect profitability for the full fiscal year 2024 for Content Sales/Licensing and Other.
- Continue to see strong demand at Disney Cruise Line.
- Several building blocks for improving margins over the coming years.
Challenges Ahead
- Demand moderation in domestic businesses could impact the next few quarters.
- Q4 Experiences segment operating income is expected to decline by mid single digits versus the prior year.
- Impacts at Disneyland Paris from a reduction in normal consumer travel due to the Olympics.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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