Disney delivered solid Q2 results and is poised for future growth.

On Wednesday, Disney revealed a strong second-quarter earnings report, largely due to the company’s theme park revenue. Not only did the earnings report beat investor expectations, but it was also better than last year.

Wall Street expected Disney’s earnings to fall $1.59 and that revenue would increase to $14.64 billion. In actuality, Disney’s earnings fell to $1.61 per share and its revenue increased to $14.92 billion.

The company’s stock rose slightly in after-hours trading before falling slightly on Thursday morning. Disney’s stock has been up more than 20% since the beginning of 2019.

Earning Report Results

The revenue from Disney’s movie studio was somewhat disappointing. It actually fell 15% to $2.13 billion. While “Avengers: Endgame” has been a huge success for Disney, these earnings aren’t part of its second-quarter earnings. “Captain Marvel” did well in the box office but still fell short of the massive success of “Black Panther” in 2018.

The company’s theme park revenue did increase by 5% to $6.17 billion due to increased attendance and guest spending. And direct-to-consumer revenue, which includes the streaming service Hulu, rose 15% to $955 million.

Disney has a 30% stake in Hulu, though the company is talking to Comcast about possibly divesting its stake. If this happens, the two companies will likely come to an agreement over the platform’s programming.

Disney CEO Bob Iger said Captain Marvel set the stage for upcoming movies. The company is currently looking into buying back third parties’ marvel content. And the company plans to add on Marvel-inspired additions to its theme parks.

What’s Next for Disney

Overall, Disney executives seemed to be pleased with the company’s second-quarter earnings report as well. And the company has a number of promising initiatives in the works.

Last month, Disney announced it was launching Disney+, a streaming service designed to compete with Netflix. Disney+ will launch in the U.S. in November and will feature a huge amount of content, including original shows from its most popular movie franchises.

Though Disney’s future growth looks promising, the company may continue to lose money in the short-term.  Iger said the company’s streaming service will likely run at a loss for about five years. And Disney will lose its licensing revenue after it ends its contract with Netflix.