Shares of Disney fell Wednesday as concerns about attendance at its theme parks overshadowed streaming profits and better-than-expected headline results. However, the quarter checked the boxes that matter most to us, making the stock decline a buying opportunity. Revenue in the fiscal third quarter totaled $23.16 billion, topping the $23.07 billion expected by analysts, according to estimates compiled by LSEG. On an annual basis, revenue rose 3.7%. Adjusted earnings per share (EPS) rose 35% year over year to $1.39, solidly ahead of the $1.19 estimate, LSEG data showed. Disney Why we own it: We value Disney for its best-in-class theme-park business, which has immense pricing power. We also believe there’s more upside as management cuts costs, expands profit margins through its direct-to-consumer (DTC) products and finds new ways to monetize ESPN. Competitors: Comcast, Netflix, Warner Bros Discovery and Paramount Global Last buy: July 29, 2024 Initiation: Sept. 21, 2021 Bottom line Disney’s streaming results give us the confidence to view Wednesday’s stock decline as one worth buying. The combined streaming business — encompassing Disney+, Hulu and ESPN+ — turned in its first-ever quarterly profit slightly ahead of schedule. And executives expect the business to make more money in the quarters ahead on its way to achieving its previously stated goal of double-digit operating margins. The subscription price hikes announced Tuesday will help, as will the full-scale crackdown on password sharing set to begin next month.