Disney shares soar on streaming profit, box office wins

NEW YORK — Shares in Disney skyrocketed on Thursday after the entertainment giant delivered better-than-expected results for its fourth fiscal quarter, driven by the success of "Deadpool & Wolverine" and "Inside Out 2."

The shot of good news comes as CEO Bob Iger is trying to navigate the company through a trying time for the media business.

Iger, who returned as CEO in November 2022, has prioritized profitability through reduced content spending and price increases.

Disney forecasts 5 to 10 percent adjusted earnings per share growth in 2025, with double-digit growth in 2026 and 2027.

The company's stock jumped as much as 10 percent after the results release.

"Deadpool & Wolverine" and "Inside Out 2" together earned three billion dollars at the global box office. As a result, content sales and licensing revenue, which includes movies, jumped 39 percent year-over-year.

Streaming was another growth driver, with revenue up 15 percent year-over-year.

Disney+ gained 4.4 million net subscribers from the previous quarter, reaching 122.7 million accounts.

Growth was stronger internationally, up 5 percent, than in North America which was up 2 percent. The streaming business, long unprofitable, is now profitable, the company said.

Overall net profit fell 19 percent to $564 million, impacted by depreciation provisions and higher tax charges. However, adjusted earnings per share, Wall Street's preferred metric, came in at $1.14, above analysts' expected $1.10.

Total revenue reached $22.6 billion, up 6 percent and also above expectations. — Agence France-Presse