Disney's stock rises on strong profits. Disney+ was a notable exception.

 Disney Company

-0.11% After the entertainment giant released quarterly profits that somewhat exceeded Wall Street's projections, shares were up in late trading on Wednesday.

The company's Disney+ streaming service saw better-than-expected membership growth during the fiscal fourth quarter, which concluded on September 30.

After the report, the stock increased by as much as 4%.

Disney reported sales for the quarter of $21.2 billion, slightly less than Wall Street's consensus expectation of $21.4 billion but up 5% from the same period last year. Earnings per share increased to 82 cents from 30 cents a year earlier, above the Street's 71 cents. The earnings from ongoing operations increased to 14 cents from 9 cents in the previous year.

The business reported that it surpassed estimates by almost three million subscribers by adding approximately seven million core members to Disney+ in the quarter, bringing the total to 112.6 million.

Disney+, which is ad-supported, currently has 5.2 million members, according to the firm, with over half of newly signed domestic users selecting the ad tier. Disney has stated that it will not prioritize minimizing password sharing until 2025. The business still anticipates that streaming will turn a profit in the 2024 fiscal fourth quarter.

Disney reported $9.5 billion in revenue for its entertainment business, which covers television and motion pictures, gaining 2% from the previous year but falling slightly short of Street projections.