It took billions of dollars in losses, a company-wide overhaul, cost-cutting and price hikes to get there, but Bob Iger and Walt Disney Co. appear to have reached a long-awaited turning point in the streaming business.

Disney (NYSE:DIS) surprised the market with a stronger-than-expected fiscal fourth quarter earnings report. The entertainment giant was able to beat Wall Street forecasts on the top and bottom line as its direct-to-consumer (DTC) business,