It's a Small World After All for Disney

Core Insights - Walt Disney reported better-than-expected financial results, raising its guidance for fiscal 2025, and announced a new theme park in Abu Dhabi, marking its seventh resort globally [1][9] Financial Performance - Analysts had low expectations, forecasting $23.1 billion in revenue for the first three months of the calendar year, a modest 5% increase, and flat adjusted earnings of $1.21 per share [3] - Actual revenue rose 7% to $23.6 billion, while adjusted earnings soared 20% to $1.45 per share, driven by a 15% increase in segment operating income [4] - Disney's adjusted earnings for fiscal 2025 are now projected at $5.75 per share, a 16% increase over fiscal 2024, surpassing previous forecasts of single-digit growth [7] Theme Parks and Experiences - Contrary to expectations, Disney's domestic parks and experiences business saw a 9% increase in revenue and a 13% jump in operating income, while rival Comcast reported a decline in its theme parks business [5] - The new Abu Dhabi resort will not require Disney to have an ownership stake or capital contributions, allowing the company to earn ongoing royalties [9][10] Streaming Operations - Disney's direct-to-consumer streaming operations, particularly Disney+, have significantly contributed to profitability, with operating profit increasing sevenfold compared to the previous fiscal year [6] Market Reaction - Following the strong financial results and theme park expansion news, Disney's stock price surged above $100, reversing a bearish narrative [11]