Walt Disney Co. (DIS) shares are soaring 10.94% in pre-market trading on Wednesday following the release of its fiscal second-quarter results that surpassed analyst expectations and the announcement of ambitious expansion plans. The entertainment giant reported adjusted earnings per share of $1.45, significantly beating the Wall Street estimate of $1.20, while revenue climbed 7% to $23.62 billion, outpacing the expected $23.14 billion.
The company's strong performance was driven by robust growth in its theme parks and streaming divisions. Disney's U.S. parks saw increased attendance and higher guest spending, while the Disney+ streaming service added 1.4 million subscribers, defying previous expectations of a modest decline. In a move that further bolstered investor confidence, Disney raised its full-year earnings guidance to $5.75 per share, a 16% increase from the previous year and well above the analyst consensus of $5.43.
Adding to the positive momentum, Disney unveiled plans for a new theme park in Abu Dhabi, United Arab Emirates, in partnership with Miral, a local development company. This marks Disney's first new park location since Shanghai Disneyland opened in 2016 and represents a significant expansion into the Middle East market. CEO Bob Iger expressed optimism about the company's direction, stating, "We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year," although he noted ongoing economic uncertainties.
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