Shares of Walt Disney (DIS 10.79%) are hovering on Wednesday. The corporate’s inventory gained 10.6% as of 1:44 p.m. ET, and gained as a lot as 12.1% earlier within the day. The leg up comes because the S&P 500 (^GSPC 0.43%) gained 0.2% and the Nasdaq Composite (^IXIC 0.27%) misplaced 0.2% on the day.

The corporate delivered better-than-expected quarterly outcomes and introduced plans for a brand new theme park in Abu Dhabi.

An earnings beat

Disney reported its Q2 earnings this morning. The numbers handily beat Wall Road’s expectations in gross sales and earnings. Income got here in at $23.62 billion, up 7% 12 months over 12 months (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 additionally raised its full-year EPS forecast to $5.75. That may be a 16% acquire YOY from 2024 and about double the steerage it had beforehand set.

Some of the spectacular elements of Disney’s outcomes was the continued profitability of its streaming enterprise, which incorporates Disney+ and Hulu. Regardless of a lot of the competitors dropping cash, the phase netted a revenue of $336 million, an enormous soar from Q2 2024’s $47 million.

Picture supply: Getty Photographs.

New Abu Dhabi theme park introduced

Buyers have been additionally impressed by Disney’s announcement that it plans to construct a brand new theme park and resort in Abu Dhabi within the United Arab Emirates. This will likely be Disney’s seventh international theme park vacation spot and represents the corporate’s first main enlargement into the Center East.

CEO Bob Iger described the undertaking as “authentically Disney and distinctly Emirati” and famous that one-third of the world’s inhabitants lives inside a four-hour flight of the UAE. This strategic location may enable Disney to faucet into an addressable tourism market of round 500 million guests from the Center East, Africa, India, Asia, and Europe.

The funding outlook strengthens

Beneath Iger’s renewed management, Disney is executing on its multipronged development technique. Parks proceed to ship, whereas the corporate seems to be one of many few winners of the streaming wars. I feel Disney is a superb choose.