walt Disney beats by $0.16, reports revs in-line; guides FY25 EPS above consensus (118.32 -1.03)
- Reports Q3 (Jun) earnings of $1.61 per share, excluding non-recurring items, $0.16 better than the FactSet Consensus of $1.45; revenues rose 2.1% year/year to $23.65 bln vs the $23.69 bln FactSet Consensus.
- 183 million Disney+ and Hulu subscriptions, an increase of 2.6 million versus Q2 fiscal 2025
- 128 million Disney+ subscribers, an increase of 1.8 million versus Q2 fiscal 2025.
- Domestic ESPN operating income declined 7% versus the prior-year quarter primarily due to higher programming and production costs reflecting contractual rate increases for the NBA and college sports.
- Domestic Parks & Experiences operating income grew 22% to $1.7 billion.
- Q4 Fiscal 2025:
- Total Disney+ and Hulu subscriptions: Increase of more than 10 million compared to Q3 fiscal 2025, with the majority of the increase coming from Hulu as a result of expanded Charter deal
- Disney+ subscribers: Modest increase in Disney+ subscribers compared to Q3 fiscal 2025
- Co issues upside guidance for FY25, sees EPS of $5.85, excluding non-recurring items, vs. $5.80 FactSet Consensus.
- Entertainment Direct-to-Consumer: Operating income of $1.3 billion
- Entertainment: Double-digit percentage segment operating income growth
- Sports: 18% segment operating income growth
- Experiences: 8% segment operating income growth
- Disney Cruise Line pre-opening expense of ~$185 million, with ~$50 million in Q4 fiscal 2025
- Equity loss from India JV of ~$200 million driven by purchase accounting amortization