Walt Disney jumped 8.84% to $111.80 on the New York market, reaching its highest price in six months during the session. The American entertainment giant generated results above expectations for the fourth quarter of its staggered financial year. Earnings per share came to $1.14 per share, up 39%, where analysts were targeting $1.10. Its revenues, up 6% and in line with expectations, amounted to $22.6 billion compared to a consensus of $22.49 billion.
The group was driven by its streaming division (Disney+, Hulu and ESPN+), which recorded an operating profit of $321 million compared to a loss of $387 million a year earlier.
Disney gained 4.4 million net subscribers to its Disney+ platform compared to the end of the previous quarter, and now boasts 122.7 million accounts. A progression which was more marked internationally (+5%) than in North America (+2%).
“We are well positioned for growth.”
CEO Bob Iger, who returned to the company after retiring in November 2022 (the next CEO will be named in early 2026, editor's note) has undertaken an aggressive cost-cutting policy and is working to revitalize the company's film and television units after a period of failures.
“We have emerged from a period of considerable challenge and upheaval,” he told investors. “We are well positioned for growth.”
In terms of prospects, the Californian firm anticipates an EPS improvement of 6 to 9% despite investment expenses of around $8 billion. It also plans to repurchase shares worth $3 billion.
