The New Year Is Almost Here and Disney Has an Exciting Present for Shareholders

Core Insights - Disney's stock has recently gained 16% over the past month, although it remains 42% below its five-year highs, indicating a potential recovery but still significant challenges ahead [1] - CEO Bob Iger has implemented strategies that have led to increased revenue, with a notable 6% year-over-year sales growth in Q4 2024 and a 79% increase in earnings per share (EPS) to $0.25 [2] - Streaming has become profitable for the first time, with operating income reaching $321 million, marking a significant milestone for the company [3] Financial Performance - Disney+ Core streaming subscriptions rose by 4.4 million to 122.7 million in Q4, driven by the new ad-supported tier, while overall entertainment streaming subscriptions, including Hulu, reached 174 million [4] - Despite positive revenue growth, net income remains 37% lower than a decade ago, highlighting the need for continued improvement in profitability [6] - For 2025, Disney is guiding for low-single digit growth in adjusted EPS and expects entertainment streaming operating income to more than triple [7] Content and Market Position - Disney released two of the top movies of the year, "Inside Out 2" and "Deadpool & Wolverine," and "Moana 2" achieved the highest-grossing Thanksgiving five-day opening [8] - The company benefits from a strong content library and a creative pipeline, with upcoming releases like "Mufasa: The Lion King" expected to perform well [9][10] - Disney's integrated approach, where films enhance the overall brand through parks, streaming, and merchandise, is a key strength [9][10]