Is DIS's earnings trajectory signaling a long-term investment opportunity?

**Disney's earnings trajectory suggests a positive outlook for long-term investment**, and here's why: 1. **Consistent Growth**: Disney's net income and diluted EPS have shown significant year-over-year growth, with a net income growth rate of 22.92% and a diluted EPS growth rate of 34.62%. This consistent growth indicates a strong financial performance and a healthy business model. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |DIS|DIS.N|The Walt Disney|2024 Q2|-85.48387096774194|1.2285124914049965|-101.44927536231884|169| |DIS|DIS.N|The Walt Disney|2024 Q3|1957.5163398692812|3.6945812807881775|672|169| |DIS|DIS.N|The Walt Disney|2024 Q4|-18.73198847262248|6.27559907725625||169| |DIS|DIS.N|The Walt Disney|2025 Q1|22.91957229195723|4.845216357382479|34.615384615384606|169| 2. **Profitability in Streaming**: The streaming division, which includes Disney+, Hulu, and ESPN+, has finally turned a profit. This is a critical milestone for Disney as it invests in streaming to compete with the likes of Netflix. The fact that streaming is now profitable suggests that Disney's strategy is working and could lead to further growth in the future. 3. **Box Office Success**: Disney's movie studios have had significant box office success with hits like Inside Out 2, Deadpool & Wolverine, and Moana 2. This indicates a strong demand for Disney's content, which is a positive sign for long-term growth as the company can continue to produce and distribute successful films. 4. **Future Growth Prospects**: Analysts expect Disney's profit forecast for FY2025 to be high single-digit growth, with EPS growth increasing to double digits in FY2026 and FY2027. This suggests that Disney is positioning itself for future growth, which is a positive signal for long-term investors. 5. **Dividend and Buyback Activity**: Disney has set a buyback target of $3 billion for FY2025, which indicates a commitment to returning value to shareholders. Additionally, while Disney does not currently pay a dividend, its focus on share buybacks can be seen as a way to distribute earnings to investors. In conclusion, Disney's earnings trajectory, combined with its profitability in streaming, box office success, future growth prospects, and shareholder return focus, suggests that there is a strong case for long-term investment in the company. However, investors should also consider the potential challenges in its broadcast and cable networks and theme park attendance, as well as the competitive landscape in the streaming sector.