Disney Stock Set To Hit 6-Month Highs After Upbeat Earnings: Retail Gets More Bullish

Shares of Walt Disney Co. ($DIS) surged 10% in pre-market trading on Thursday following stronger-than-expected fiscal fourth-quarter results, positioning the stock to reach levels last seen in May. 

The entertainment giant reported adjusted earnings per share (EPS) of $1.14, beating consensus estimates of $1.09, while revenue came in at $22.6 billion, slightly above the expected $22.59 billion.

Disney’s earnings were bolstered by a robust performance from its film studio, driven by hits like “Inside Out 2” and “Deadpool & Wolverine”, alongside a second consecutive quarter of profit for its streaming division, which includes Disney+, Hulu, and ESPN+. 

The Direct-to-Consumer (DTC) segment posted a profit of $321 million, significantly surpassing Wall Street’s forecast of $202.9 million.

Disney+ subscribers of 158.6 million were also ahead of estimates.

“This was a pivotal and successful year for The Walt Disney Company, and 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,” said CEO Bob Iger. 

Iger highlighted key achievements, including “one of the best quarters” ever for Disney’s film studio, a record-breaking haul of 60 Emmy Awards, and new initiatives in the company’s Experiences segment. 

Looking ahead, Disney provided a rare long-term outlook, projecting adjusted EPS growth in the high single digits for FY25 and double digits for FY26 and FY27, both reportedly surpassing analysts’ expectations.

The company also projected its entertainment streaming unit’s operating profit to grow by $875 million in fiscal 2025, reaching up to $1 billion.

Retail sentiment on Stocktwits turned ‘extremely bullish’ ahead of the market open, with Disney among the top 5 trending tickers. 

Message volume soared as users cheered the strong results and forward guidance.

The earnings beat and optimistic forecast follows Iger’s turnaround efforts since retaking the helm in November 2022. His strategic focus included cost-cutting, price hikes in theme parks and streaming, and a renewed content pipeline. 

Disney’s search for Iger’s successor is being spearheaded by incoming Chairman James Gorman, with an announcement expected in early 2026.

Year-to-date, Disney shares are up over 13% as of Wednesday’s close.

For updates and corrections, email newsroom@stocktwits.com

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