09:25 AM EST, 11/14/2024 (MT Newswires) -- Walt Disney's ( DIS ) fiscal fourth-quarter results exceeded market expectations buoyed by its streaming business, while the media and entertainment giant said it expects adjusted earnings growth in fiscal 2025 year over year.

The company on Thursday reported adjusted earnings of $1.14 a share for the quarter ended Sept. 28, up from $0.82 the year before and ahead of the Capital IQ-polled consensus of $1.11. Revenue inclined 6% year over year to $22.57 billion, above the Street's view for $22.49 billion. The stock advanced 9.1% in premarket activity.

"Our solid performance in the fiscal fourth quarter reflected the success of our strategic efforts to improve quality, innovation, efficiency and value creation," Chief Executive Robert Iger said in a statement. The company saw "improved profitability" in its streaming businesses, according to Iger.

In the entertainment segment, revenue climbed 14% to $10.83 billion, as double-digit gains in direct-to-consumer and content sales and licensing more than offset a 6% decline in linear networks. The company's combined direct-to-consumer streaming businesses posted an operating income of $321 million versus a loss of $387 million a year ago. Pixar's "Inside Out 2" and Marvel's "Deadpool & Wolverine" helped drive a $316 million operating income for content sales and licensing, the company said.

The number of core Disney+ subscribers rose 4% sequentially to 122.7 million, while Disney+ Hotstar ticked up 1% to 35.9 million. Hulu's paid subscribers increased 2% from the June quarter to 52 million.

The experiences division's revenue gained 1% year over year to $8.24 billion. Domestic parks and experiences rose 3% to $5.52 billion, while the international side dropped 5% amid lower attendance and higher costs, among other factors. Consumer products sales moved 2% higher to $1.14 billion.

For fiscal 2025, Disney ( DIS ) anticipates high single-digit growth in adjusted earnings on a per-share basis versus last year's figure of $4.97. The Street is currently looking for normalized EPS of $5.15. The company forecasts double-digit operating income growth in its entertainment segment, but sees a "modest" sequential decline in core Disney+ subscribers in the first quarter.

Operating income in the experiences division is pegged to rise by 6% to 8% annually for the ongoing fiscal year. The group expects Hurricane Helene and Hurricane Milton to weigh on the segment's operating income by about $130 million in the current three-month period, while Disney Cruise Line pre-launch costs are set to be a roughly $90 million hit.

"We expect fiscal 2025 results to reflect the progress we are making to profitably scale our streaming businesses with attractive margins and continued investments to grow our experiences businesses," Iger and Chief Financial Officer Hugh Johnston said in prepared remarks. "We anticipate the growth in our businesses and our continued cost discipline will help drive approximately $15 billion in cash provided by operations."

Disney ( DIS ) estimates double-digit adjusted EPS gains in fiscal 2026 and 2027.

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