Disney (DIS) stock soared Thursday after the company's upbeat earnings report.
The company announced Wednesday it would increase its cash dividend by 50% as streaming losses narrowed while revenue beat expectations.
Disney reported adjusted earnings of $1.22 per share, well above the $0.99 expected by analysts surveyed by Bloomberg. The company also forecast full-year 2024 earnings of $4.60 per share, an increase of at least 20% from 2023.
Sales came in at $23.5 billion, slightly below expectations of $23.8 billion.
The company declared a cash dividend of $0.45 per share. This is a 50% increase compared to the previous dividend paid in January. The dividend is scheduled to be paid on July 25 to shareholders of record as of the close of business on July 8.
The board also approved a new stock repurchase program with a target of $3 billion in acquisitions in fiscal year 2024.
Disney is grappling with challenges including a decline in its linear television business, slowing growth in its parks business and losses in its streaming business. Last year, as stock prices hit multi-year lows, activist investor Nelson Peltz renewed his call for a shake-up of the company's board.
CEO Bob Iger is working on a variety of cost-cutting measures to combat these challenges. The company said Wednesday it is on track to meet or exceed its annual savings goal of $7.5 billion by the end of fiscal year 2024, adding that it “continues to explore further efficiency opportunities.”
The company also revealed a number of new announcements.
Notably, Disney announced plans to invest $1.5 billion in Fortnite maker Epic Games, with Iger calling the company Disney's “largest-ever entry into the world of video games.” ” he called.
On the content side, the company said Disney+ will be the exclusive streaming home for “Taylor Swift: The Eras Tour (Taylor's Version).” The concert film will include five more acoustic songs, including “Cardigan.”
Meanwhile, the sequel to the animated “Moana” is scheduled to be released in theaters in November, as Disney leans more toward sequels and series amid sluggish box office revenue.
Disney also announced a more firm schedule for its over-the-top (OTT) ESPN streaming service, revealing that the platform will launch in fall 2025.
The development comes after news broke that Disney-owned ESPN is partnering with Warner Bros. Discovery (WBD) and Fox (FOXA) to launch a new sports streaming service, set to debut sometime this fall. .
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