Disney experienced a 12% increase in stock price at close on Thursday after releasing the company’s Q1 earnings report a day before. The results exceeded expectations in what many consider a gloomy economy for legacy media companies.
Led by Bob Iger, Disney says it expects $4.60 earnings per share for the full year fiscal 2024, outperforming its prior-year performance by at least 20%. Cash dividend will increase by 50% comparative to January’s dividend, amounting to $0.45 per share, payable July 25, 2024. The Walt Disney founded company missed its revenue target by $300 million, reporting $23.5 billion in revenue.
“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation,” said Iger. “Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.”
Per the request of the company’s board of directors, Iger famously came out of retirement to “save Disney” at the tail’s end of 2022 and quickly strategized a cost-cutting plan to maximize efficiencies. The longtime Disney CEO plans to save $7.5 billion from the efforts.
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In addition to cuts across its assets, Iger will reignite M&A as he did when Disney acquired 21st Century Fox, Lucasfilm, Marvel, and Pixar. For now, Disney has eyes on Epic Games, the leading game developer known for Fortnite, Grand Theft Auto, Fall Guys, and Assassin’s Creed.
The company is optimistic about its streaming platform Disney+, despite reportedly losing 1.3 million core subscribers (112.6 million in Q3 to 111.3 million in Q4) due to an increase in subscription prices in the last quarter of 2023. The hike caused a loss of $138 million, significantly better than 2023’s alarming $984 million loss.
Disney hopes to overshadow the loss with an ambitious gain of 5.5 million to 6 million subscribers via its inclusion in offerings from cable carrier Charter Communications.
With an objective to make its streaming assets more profitable by fiscal year’s end, Disney will restrict password sharing for its streamers, add Taylor Swift: The Eras Tour with exclusive music to Disney+, and team ESPN with Fox and Warner Bros. Discovery for a sports-centric streaming platform.
For the first time since May 2023, Disney’s stock price surged over the $100 mark, landing at a little over $108 on Friday, Feb. 9. Pretty good in comparison to other legacy studios, such as Warner Bros Discovery ($9.64), Paramount Global ($20.51), Comcast/Universal ($42.06), and Sony ($95.83).
