08:55 AM EDT, 08/07/2024 (MT Newswires) -- Walt Disney ( DIS ) raised its full-year earnings growth outlook on Wednesday following a better-than-expected fiscal third quarter, while the media and entertainment giant said its combined streaming businesses achieved profitability earlier than expected.

The company now anticipates per-share adjusted earnings to grow by 30% for fiscal 2024, compared with its prior target for an increase of 25%. The consensus on Capital IQ is for normalized EPS of $4.79.

For the quarter ended June 29, Disney's ( DIS ) adjusted EPS jumped 35% year over year to $1.39, topping the Street's view for $1.19. Revenue for the second quarter improved 4% to $23.16 billion, ahead of analysts' $23.09 billion forecast.

"This was a strong quarter for Disney ( DIS ), driven by excellent results in our entertainment segment both at the box office and in (direct-to-consumer), as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance," Chief Executive Robert Iger said in a statement. "We are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets."

In the entertainment segment, revenue rose 4% to $10.58 billion, driven by a 15% jump in direct-to-consumer sales. The number of core Disney+ subscribers ticked up 1% sequentially to 118.3 million, while Disney+ Hotstar users dipped 1% to 35.5 million. Hulu's paid subscribers increased to 51.1 million from 50.2 million as of March 30. Disney ( DIS ) on Tuesday announced price increases for its Disney+, ESPN+ and Hulu subscription plans.

The experiences division's revenue rose 2% to $8.39 billion, as domestic and international parks and experiences logged gains. However, moderating consumer demand towards the end of the quarter weighed on revenue growth in the segment, which logged a 3% decline in operating income, according to the company.

Disney ( DIS ) said the demand moderation in its domestic experiences operations could impact the "next few quarters," with segment operating income in the ongoing three-month period likely to decline by mid-single-digits on an annual basis. The forecast assumes impacts at Disneyland Paris due to a reduction in normal consumer travel as a result of the 2024 Olympics, and some "cyclical softening" in China, the company said.

Disney ( DIS ) anticipates profitability of its combined streaming businesses to "improve" in the fourth quarter, with entertainment direct-to-consumer and ESPN+ seen turning profits. The company projects core Disney+ subscribers to grow "modestly" in the quarter.

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