Is DIS's Q4 2024 earnings growth sustainable?
3/28/2025 08:14pm
**Disney's Q4 2024 earnings growth appears to be sustainable**, considering the following points:
1. **Consistent Performance Across Segments**: Disney has shown strong performance across its segments, with significant increases in segment operating income in key areas such as Entertainment, Direct-to-Consumer, and Sports. This consistent performance indicates a stable and sustainable business model.
2. **Revenue Growth**: Although the revenue growth rate in Q4 2024 is relatively low at 0.35%, the overall revenue achieved is substantial at $91.36 billion. The sustainability of revenue growth can be attributed to the company's diversified business segments and its ability to adapt to market changes.
|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|DIS|DIS.N|The Walt Disney|2024 Q1|0.15736645117386866|2.3549E10|169|
|DIS|DIS.N|The Walt Disney|2024 Q2|1.2285124914049965|2.2083E10|169|
|DIS|DIS.N|The Walt Disney|2024 Q3|3.6945812807881775|2.3155E10|169|
|DIS|DIS.N|The Walt Disney|2024 Q4|6.27559907725625|2.2574E10|169|
3. **Earnings Per Share (EPS) Growth**: The EPS growth rate in Q4 2024 is 1.39%, which may not be significant, but it is a positive indicator of the company's profitability trend. The EPS for the quarter is $2.72, which is a testament to the company's ability to generate earnings.
|code|Ticker|Name|Date|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|
|DIS|DIS.N|The Walt Disney|2024 Q1|48.57142857142859|169|
|DIS|DIS.N|The Walt Disney|2024 Q2|-101.44927536231884|169|
|DIS|DIS.N|The Walt Disney|2024 Q3|672|169|
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|DIS|DIS.N|The Walt Disney|2024 Q1|48.57142857142859|1.04|169|
|DIS|DIS.N|The Walt Disney|2024 Q2|-101.44927536231884|-0.01|169|
|DIS|DIS.N|The Walt Disney|2024 Q3|672|1.43|169|
4. **Industry Position**: Disney's dominant position in the entertainment industry, as evidenced by its ability to dominate the box office with movies like "Mufasa: The Lion King", suggests a strong competitive advantage that can sustain its earnings growth.
5. **Strategic Initiatives**: The company's strategic initiatives, such as the launch of Disney+ and Hulu subscriptions, indicate a forward-looking approach to growth that can contribute to sustainable earnings.
6. **Financial Health Indicators**: Disney's financial health indicators, such as the increase in income before income taxes and diluted earnings per share, suggest a strong financial foundation that supports the sustainability of its earnings growth.
7. **Market Sentiment**: Despite some fluctuations in the stock price, Disney's stock outperformed the S&P 500 in a recent trading session, indicating positive market sentiment that can support the sustainability of its earnings growth.
In conclusion, while the growth rates in certain metrics may not be spectacular, the overall performance of Disney's business segments, its revenue achievement, and its strategic initiatives suggest that the company's Q4 2024 earnings growth is sustainable.