On August 7, 2024, The Walt Disney Company (Disney) released its earnings report for the third quarter ended June 29, 2024. The report showed a significant improvement in financial performance compared to the previous year. Revenues increased to $23.2 billion, up from $22.3 billion in the prior-year quarter. Income before taxes saw a substantial turnaround, posting a $3.1 billion income compared to a $0.1 billion loss in the prior-year quarter. Diluted earnings per share (EPS) was $1.43, a marked improvement from a loss of $0.25 per share in the prior-year quarter. Excluding certain items, diluted EPS for the quarter increased to $1.39 from $1.03 in the prior-year quarter. The Entertainment segment's operating income nearly tripled year over year, driven by strong results in Direct-to-Consumer and...Show More

On August 7, 2024, The Walt Disney Company (Disney) released its earnings report for the third quarter ended June 29, 2024. The report showed a significant improvement in financial performance compared to the previous year. Revenues increased to $23.2 billion, up from $22.3 billion in the prior-year quarter. Income before taxes saw a substantial turnaround, posting a $3.1 billion income compared to a $0.1 billion loss in the prior-year quarter. Diluted earnings per share (EPS) was $1.43, a marked improvement from a loss of $0.25 per share in the prior-year quarter. Excluding certain items, diluted EPS for the quarter increased to $1.39 from $1.03 in the prior-year quarter. The Entertainment segment's operating income nearly tripled year over year, driven by strong results in Direct-to-Consumer and Content Sales/Licensing. Notably, Disney's streaming services achieved profitability for the first time, one quarter ahead of schedule. The success of 'Inside Out 2' contributed to this achievement, becoming the highest-grossing animated film of all time and driving significant Disney+ sign-ups and views. ESPN's operating income grew by 4%, while the Sports segment saw a 6% decline due to lower results from Star India. Experiences segment revenue increased by 2%, but operating income decreased by 3%, affected by a moderation in consumer demand. Despite this, Disney Cruise Line and Consumer Products showed improved results. Looking ahead, Disney raised its full-year adjusted EPS growth target to 30% and remains focused on driving incremental cost savings. The company expects its streaming businesses to continue improving profitability in the fourth quarter, with modest growth in Disney+ Core subscribers. However, the Experiences segment may face challenges in the coming quarters due to demand moderation and other factors.