- Disney stock rallies more than 10% on earnings beat.
- Adjusted EPS reached $1.45, a 20% consensus beat.
- Disney says it will partner with a local operator for its seventh theme park.
- Disney+ subscribers increased by more than 1 million in the quarter.
Disney (DIS) stock is leading the Dow Jones Industrial Average (DJIA) higher on Wednesday. The entertainment conglomerate released a blowout quarterly result before the open and announced plans for a new theme park in Abu Dhabi, United Arab Emirates.
The broader market is mixed with the NASDAQ Composite down slightly in the late morning trade, but the Dow Jones is leading the pack, up 0.4%. Treasury Secretary Scott Bessent says he will hold the first set of trade negotiations with China this coming weekend at a meeting in Switzerland, which has prompted renewed optimism among Wall Street's elite.
There is still a bit of apprehension ahead of the Federal Reserve's (Fed) FOMC decision slated for 2:00 pm EST, although the central bank is expected to keep interest rates unchanged in a range between 4.25% and 4.50% as Chair Jerome Powell wants to wait until the Trump administration's tariff policy carries through into economic indicators.
Disney stock earnings
In the fiscal second quarter, which ended in March, Disney earned $1.45 or 24 cents per share, ahead of the Wall Street consensus. That amounted to an unexpected 20% beat on the bottom line. Revenue of $23.6 billion grew 7% YoY and arrived nearly half a billion above the general forecast.
The overall Entertainment unit saw operating income surge $500 million from a year earlier to $1.3 billion. The Experiences unit that houses its theme parks saw operating income add $200 million YoY to $2.5 billion in the quarter. The Sports unit, however, saw operating income fall nearly 12% YoY to $687 million.
ESPN+ subscribers fell 3% YoY to 24.1 million, Hulu subscribers rose 9% YoY to 54.7 million, and Disney+ subscribers rose by 1.4 million QoQ to 126 million.
Disney's direct-to-consumer segment saw a major pickup with operating income climbing 615% YoY to $336 million.
Disney said it had repurchased $1 billion worth of shares in the quarter and would buy another $2 billion the rest of the year. For the full fiscal year, Disney raised its guidance from $5.44 in adjusted earnings per share (EPS) to $5.75.
Disney executives said they plan to coordinate with local partner Miral to build a new waterfront resort on Abu Dhabi's Yas Island. This island already contains the SeaWorld and Warner Bros. World entertainment parks. Besides what will be its seventh theme park worldwide, Disney said it plans on investing $30 billion in its theme parks in California and Florida.
Disney stock forecast
Disney stock blasted through its 200-day Simple Moving Average (SMA) near $100 and now appears to be using it as support. Bulls will expect DIS stock to make a run at the $107 level that has acted as support in the past or possibly a further run at the $118 resistance level.
However, bears will note that the Relative Strength Index (RSI) has already reached overbought conditions, and any negative market sentiment could make this an operable level for taking profits off the table.
DIS daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD struggles to retain 1.1500 as USD gains traction
EUR/USD hovers around the 1.1500 level in the American session on Friday. The US Dollar surges despite dovish comments from Fed Governor Waller, supporting a rate cut as soon as July. The mood sours as investors weigh Middle East developments.
GBP/USD dives below 1.3500 after weak UK data, resurgent USD
GBP/USD turned red for the day and approaches the 1.3450 area as the week comes to an end. Earlier in the day, the UK reported weak Retail Sales figures, although the ongoing slump seems related to renewed risk aversion fueling safe-haven US Dollar demand.
Gold surges above $3,3360 as fears kick in
Gold gathers near-term momentum and trades near $3,370 ahead of the weekly close, as risk sentiment took a turn to the south. Following a positive start, Wall Street turned south. Middle East tensions and massive back-and-forth missile exchanges between Iran and Israel seem to be behind the ongoing run to safety.
Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025
Ondo Finance launched tokenized treasuries on the XRP Ledger in June, paving the way for seamless institutional adoption. The market capitalization of tokenized treasuries has grown to $5.9 billion despite market uncertainty over US tariffs.
Weekly focus: War and risk of escalation weigh on market sentiment
The war between Israel and Iran and the risk of further escalation weighed on markets this week. Equity markets largely traded in red and US treasury yields slid lower. That said, markets were by no means in full risk-off sentiment.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.