(Boursier.com) — Walt Disney climbed nearly 7% after trading last night on Wall Street. The American entertainment giant has indeed exceeded market expectations for the first fiscal quarter in terms of earnings per share and reduced its losses in streaming, announcing in the process a 50% increase in its dividend. The group thus posted adjusted quarterly earnings per share of $1.22, well above the consensus which was 99 cents. Revenues were $23.5 billion versus the consensus of $23.8 billion. The Burbank group revealed a cash dividend of 45 cents per share, 50% better than the previous coupon in January. It will be payable on July 25 to shareholders registered on July 8 at the close. The board of directors also approved a new $3 billion share repurchase program for fiscal 2024.
Walt Disney now expects earnings per share of $4.60 for fiscal 2024, which would represent an increase of more than 20% compared to 2023. The Bloomberg consensus was at $4.27. Bob Iger, the company’s chief executive, said last night that the group was on track to meet or exceed its annualized savings target of $7.5 billion for the end of fiscal 2024. Management intends Furthermore, continue to look for additional “efficiency” opportunities. In other words, costs should be further reduced.
The Disney+ streaming service, however, is still struggling. The number of subscribers fell below 150 million during the quarter, compared to 151 million consensus. The loss of streaming operations, including Disney+, but also Hulu and ESPN+, was nevertheless largely reduced to $216 million, compared to more than a billion dollars a year earlier. The group expects these activities to reach profitability in the fourth quarter of the current financial year. However, the accounts were supported over the period closed by the performance of international parks, with a 35% growth in activity and a quadrupling of profits. Traditional media businesses suffered with ABC, while studios also disappointed.
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