Disney earnings beat estimates, boosted by surprise streaming entertainment profit By Investing.com

Investing.com — Walt Disney (NYSE:) has reported adjusted earnings per share of $1.21 in its fiscal second-quarter, topping Wall Street estimates, as the entertainment giant’s executive team looks to turn the page after emerging victorious in a fierce proxy battle earlier this year.

California-based Disney also improved its guidance for full-year per-share income growth to 25%, up from its prior outlook of 20%.

In a statement, Chief Executive Bob Iger, who was at the center of a fight with activist investors led by Trian Partners boss Nelson Peltz, said that a turnaround push he has been helming is yielding “positive results.”

He pointed in particular to a surprise operating profit of $47 million at its direct-to-consumer (DTC) entertainment streaming service, which includes offerings like Disney+ and Hulu, as well as its crucial theme parks business.

Although the DTC segment is seen delivering “softer” results in the current quarter, Iger added that he still expects Disney’s overall streaming business including sports subscription service ESPN+ to be profitable by the fourth quarter. Iger has overseen heavy investments in developing Disney’s streaming presence, arguing that it will be a key part of an ongoing drive to revive the firm’s share price performance, .   

“[W]e are delivering on our strategic priorities and building for the future,” Iger said.

Group-wide revenues for the quarter jumped to $22.08 billion from $21.8B a year ago, compared to Bloomberg consensus estimates of $22.1B.

Shares in Disney were lower in premarket U.S. trading on Tuesday. The stock price has gained almost 30% so far this year.

This is a developing story. Please check back later for updates.