Disney CEO Bob Iger is moving to cement his legacy by undoing his biggest mistake

Core Viewpoint - Disney's decision to provide earnings guidance through 2027 reflects confidence in its future performance and is part of CEO Bob Iger's strategy to solidify his legacy [1][3][10] Financial Performance - Disney reported a 23% increase in operating income and a 6% rise in revenue in its latest quarterly earnings [2] - The entertainment segment saw a more than four-fold increase in earnings, while the streaming division, including ESPN+, generated a profit of $321 million [2][8] Earnings Guidance - Disney announced expectations of high-single-digit earnings growth in 2025, followed by double-digit improvements in the subsequent two years [3][11] - This level of detailed guidance is unprecedented for Disney and indicates a shift towards greater transparency [4][5] Strategic Implications - Iger's move to share long-term guidance is seen as a way to demonstrate the progress made during his tenure and to prepare for a smooth succession [6][10] - The guidance aims to alleviate uncertainty surrounding the company's future and to reassure investors of its stability [11][12] Historical Context - Comparisons to the company's performance two years ago highlight the turnaround since Iger's return, particularly in the streaming sector, which improved from a $1.5 billion loss to a profit of $321 million [7][8] - The previous CEO, Bob Chapek, faced significant challenges, and Iger's current strategy is partly a response to those past difficulties [9][10]