Disney (DIS) reported fiscal third quarter earnings on Wednesday that beat expectations, driven by continued strength in its domestic parks business and a year-over-year swing to profitability in its streaming unit. Revenue came in roughly in line with forecasts.
The direct-to-consumer segment posted a profit of $346 million, compared to a $19 million loss a year ago. The company continues to prioritize consistent profitability in streaming amid the ongoing shift away from traditional pay-TV. Disney is targeting approximately $875 million in streaming profits for fiscal 2025.
The company raised its full-year profit forecast to $5.85 a share, up from its May forecast of $5.75 and ahead of Wall Street expectations of $5.77.
Prior to its earnings update, Disney also confirmed previous reports that ESPN has reached a preliminary deal to acquire key NFL Media assets, including NFL Network, NFL RedZone, and NFL Fantasy, in exchange for a 10% equity stake in the network.
The stock gave up earlier gains and slipped around 2% in pre-market trading, as steep declines in the linear TV business overshadowed strength in parks and streaming.
