Shares of Walt Disney (DIS 1.01%) are soaring on Wednesday. The company's stock gained 10.6% as of 1:44 p.m. ET, and gained as much as 12.1% earlier in the day. The leg up comes as the S&P 500 (^GSPC +0.80%) gained 0.2% and the Nasdaq Composite (^IXIC +1.63%) lost 0.2% on the day.
The company delivered better-than-expected quarterly results and announced plans for a new theme park in Abu Dhabi.
NYSE: DIS
Key Data Points
An earnings beat
Disney reported its Q2 earnings this morning. The numbers handily beat Wall Street's expectations in sales and earnings. Revenue came in at $23.62 billion, up 7% year over year (YOY) and above estimates of $23.05 billion. Adjusted earnings per share (EPS) reached $1.45, up a whopping 20% and beating expectations of 1.20.
Disney also raised its full-year EPS forecast to $5.75. That would be a 16% gain YOY from 2024 and about double the guidance it had previously set.
One of the most impressive aspects of Disney's results was the continued profitability of its streaming business, which includes Disney+ and Hulu. Despite much of the competition losing money, the segment netted a profit of $336 million, a massive jump from Q2 2024's $47 million.
Image source: Getty Images.
New Abu Dhabi theme park announced
Investors were also impressed by Disney's announcement that it plans to build a new theme park and resort in Abu Dhabi in the United Arab Emirates. This will be Disney's seventh global theme park destination and represents the company's first major expansion into the Middle East.
CEO Bob Iger described the project as "authentically Disney and distinctly Emirati" and noted that one-third of the world's population lives within a four-hour flight of the UAE. This strategic location could allow Disney to tap into an addressable tourism market of around 500 million visitors from the Middle East, Africa, India, Asia, and Europe.
The investment outlook strengthens
Under Iger's renewed leadership, Disney is executing on its multipronged growth strategy. Parks continue to deliver, while the company appears to be one of the few winners of the streaming wars. I think Disney is a great pick.
