Disney stock fell more than 12% Wednesday after the company reported disappointing fourth-quarter earnings and forecast slower growth in the coming year.
Disney ended its fiscal year with $82.72 billion in revenue, 22% higher than the previous year, and profit of $3.19 billion, up from $2.02 billion last year.
Despite the impressive growth, earnings have still not reached pre-pandemic levels, and the company advised profit and revenue growth would slow in the coming year.
Disney CEO Bob Chapek pointed to “outstanding subscriber growth at our direct-to-consumer services,” including 12.1 million Disney Plus subscribers added in the fourth quarter.
Chapek said the company expects direct-to-consumer operating losses to “narrow” and that Disney Plus “will still achieve profitability in fiscal 2024.”
