Key takeaways:

• Disney surpasses earnings estimates with $2.55 billion profit, boosted by the box office success of "Moana 2."
• Overall revenue rose 5% to $24.69 billion, slightly above analyst expectations.
• Disney+ subscribers saw a modest decline, raising concerns amid a competitive streaming landscape.
• Challenges persist in domestic theme parks, impacted by weather-related closures and operational costs.

Disney reported robust first-quarter earnings, exceeding Wall Street expectations largely due to the blockbuster performance of the animated sequel "Moana 2." The film, originally conceived for a streaming series, instead broke box office records, garnering over $1 billion since its release and significantly driving revenue for Disney's entertainment segment. The company's financial results for the period ending December 28 show earnings of $2.55 billion, or $1.40 per share, compared to a profit of $1.91 billion or $1.04 per share during the same quarter last year. This earnings growth underscores Disney's strategic shift toward leveraging its popular intellectual properties, as CEO Bob Iger noted in a statement.

Revenue for the quarter climbed to $24.69 billion, beating analysts' projections of $24.62 billion. Operating income soared by 31% to $5.1 billion, reflecting the strength of the Moana franchise and higher profitability in the company's streaming services.

The performance of Disney+, alongside Hulu, marked an operating profit of $293 million, representing a turnaround from the loss of $138 million a year prior. However, Disney also announced a 1% dip in paid subscribers, totaling 124.6 million, following a price increase, with forecasts indicating a possible further drop in the next quarter. Despite the overall positivity in earnings, analysts expressed concerns regarding the challenges faced by Disney's streaming service in light of the competitive market, notably against competitor Netflix, which added 19 million subscribers during the same period.

The company’s Experiences division, which encompasses its theme parks, cruise lines, and consumer products, revealed a flat operational income of $3.11 billion. Domestic parks, particularly in Florida, faced challenges from weather events, such as Hurricane Helene and Milton, contributing to a decline of 5% in operating income, contrasted with a 28% rise in international parks.

Disney's Entertainment unit, which combines film, television, and streaming services, also demonstrated significant gains with an operational income of $1.7 billion, indicative of the positive impact from "Moana 2." Despite this, the company recognized a 11% drop in operating income for its traditional television networks, underscoring the ongoing transition from linear to digital platforms.Source: AP, Source: The Guardian, Source: Reuters