Despite saying it was bracing for future economic volatility, Walt Disney Co. blasted past earnings projections in its fiscal second quarter on Wednesday, citing high theme park attendance.
Disney’s (DIS) $3.3 billion net income was significantly higher than the $216 million profit it generated in the same period last year. According to analysts surveyed by FactSet, that was significantly more than the $1.9 billion that was anticipated.
In comparison to the $1.21 reported in the same quarter previous year, the company’s adjusted earnings per share of $1.45 represented a 20% increase. That was far higher than the $1.19 per share analysts had predicted.
“Our outstanding performance this quarter-with adjusted EPS up 20% from the prior year driven by our entertainment and experiences businesses-underscores our continued success building forgrowth and executing across our strategic priorities,” stated Robert Iger, CEO of Disney. “Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
The business did, however, caution that it was keeping an eye on “macroeconomic developments for potential impacts to our businesses,” noting that “uncertainty remains regarding the operating environment for the balance of the fiscal year.”
According to FactSet, revenue for the quarter exceeded forecasts of $23.1 billion by coming in at $23.6 billion, up 7% from $22.1 billion in the second quarter of the previous year.
In premarket trading on Wednesday, the stock surged 6.3%, which was sufficient to keep up with the SPX gainers ahead of the opening bell for the S&P 500 index.
Due to investors’ perception that Disney may be more vulnerable to an economic downturn resulting from the Trump administration’s tariff measures, the company’s shares have dropped 17.2% so far this year, while the S&P 500 has declined 4.7%.
Disney reported $8.9 billion in theme park revenue for the quarter, up from $8.4 billion during the same period last year. That was significantly more than the $7.98 billion analysts had predicted for the segment.
Disney also reported that over the previous quarter, the streaming services Disney+, Hulu, and ESPN+ added 2.5 million net customers.
