Walt Disney shares surged Thursday after the entertainment giant reported quarterly earnings that beat Wall Street's estimates and offered robust guidance for the coming years.
Reuters reports the company projected adjusted earnings-per-share percentage growth in the high single digits in fiscal 2025, even with capital expenditures of roughly $8 billion. It also said it expects to buy back $3 billion worth of stock. Disney forecast double-digit per-share earnings growth in fiscal 2026 and 2027 as its investments in theme parks, its cruise ship fleet and streaming pay dividends.
"We do feel like it's appropriate for us to give you a multi-year look, because these investments are obviously multi-year in nature," CFO Hugh Johnston told investors. "In terms of our confidence in delivering, obviously, we've got confidence in it. Otherwise we wouldn't do it."
"Although Disney doesn’t typically issue long-term guidance, this earnings report was marked by an optimistic outlook through 2027," said eMarketer vice president Paul Verna. "Investors cheered the results."
The entertainment giant's recent success at movie theaters helped offset a decline in operating income at the company's Experiences and Sports divisions. Lower attendance at international locations dragged on theme parks results, and higher programming and production costs hurt ESPN.
Chief Executive Bob Iger, who returned to the company from retirement in November 2022, undertook aggressive cost-cutting and worked to revitalize the company's film and TV units after a period of misfires.
"We've emerged from a period of considerable challenges and disruption," Iger told investors. "We're well positioned for growth."
Disney last month said it would name a new chief in early 2026. The new boss would replace Iger, who returned to the company to take the top job after the board fired his handpicked CEO.
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