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Disney shares rose 7% after reporting quarterly profits that beat expectations and the prospect of cost savings
Walt Disney Co. shares (DIS) rose 7% in after-hours trading Thursday, after the world’s largest entertainment company reported quarterly profit that beat analysts’ expectations and said it would save another $1 billion. dollars spent in 2023.
According to its fourth quarter fiscal 2023 financial report, Disney recorded revenue of $18.5 billion, down 6% from the same period last year, but still higher than the average analyst forecast of 17,000. 8 billion dollars. Adjusted profit per share was $0.37, beating expectations of $0.03.
Disney said its fourth-quarter results were impacted by the Covid-19 pandemic, especially in the parks, tourism and products sectors. However, the company also noted strong growth for its Disney+ streaming service, with the number of subscribers reaching 118.1 million at the end of the quarter, up 57% year over year.
During a press conference with investors, Disney CEO Bob Chapek said the company will save another $1 billion in costs by 2023, by optimizing operations and cutting staff. the. He also said that Disney will increase its investment in high-quality content for streaming platforms, with plans to release about 60 new movies and TV shows by 2023.
Analysts have positively evaluated Disney’s business results and prospects. MoffettNathanson analyst Michael Nathanson raised his price target on Disney shares from $185 to $210, with a buy recommendation. “Disney has proven that it can overcome the pandemic crisis by leveraging the power of its brand, content and technology. We believe Disney will continue to lead the way,” he wrote in a report. leader in the global entertainment industry in the near future.”
Disney shares are up 25% this year, outperforming the S&P 500 index, and hit an all-time high of $187.86 on Thursday. The company currently has a market capitalization of $337 billion, ranking 14th on the list of the world’s most valuable companies.
