Walt Disney’s stock rose 2% after the company posted financial results that showed its revenue and profit reaching record levels, as investors weighed the company’s plans to compete against Netflix in the market for digital streaming.
Disney’s revenue rose 12% year over year to $14.3 billion, beating Wall Street estimates by $580 million. The company also recorded non-GAAP earnings of $1.48 a share, surpassing analyst forecasts by 14 cents a share.
The company’s growth was strong in its division overseeing theme parks, which rose 11% in the quarter to $5.1 billion. Revenue in its media networks division, meanwhile, rose 9% to $6 billion, while sales from its studio entertainment segment rose to $2.2 billion.
To compete with Netflix, Disney is launching a streaming service that will feature its own production assets—such as Star Wars, Pixar, and Marvel titles—along with some it would pick up in its acquisition of 21st Century Fox. The digital offering of those combined franchises could help lift Disney’s finances in coming years.
“We remain focused on the successful completion and integration of our 21st Century Fox acquisition and the further development of our direct-to-consumer business, including the highly anticipated launch of our Disney-branded streaming service late next year,” Disney CEO Robert Iger said in a statement.
Disney’s stock was up $2.08 a share, or $1.8%, at $118.80 a share in after-hours trading Thursday.