Disney stock rises on strong earnings. Disney+ Was a Glimmer of Hope.

Thedailycourierng

Disney stock rises: Disney (DIS) shares surged in late trading on Wednesday following the release of the entertainment giant’s quarterly earnings that slightly surpassed Wall Street’s expectations. The company’s fiscal fourth-quarter results, which ended on September 30, highlighted robust subscriber growth for its Disney+ streaming service.

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Disney stock rises by as much as 4% after the earnings report.

Disney reported quarterly revenue of $21.2 billion, marking a 5% increase from the same period last year, just below the Wall Street consensus estimate of $21.4 billion. Earnings came in at 82 cents per share, up from 30 cents in the corresponding period a year earlier, surpassing the Street’s projection of 71 cents. Earnings from continuing operations were 14 cents, up from 9 cents in the year-ago period.

The company disclosed that it added nearly seven million core subscribers to Disney+, bringing the total to 112.6 million, exceeding expectations by approximately three million subscribers.

Disney also noted that it currently has 5.2 million subscribers for the ad-supported version of Disney+, with more than half of the new domestic subscribers opting for the ad tier. The company anticipates addressing the issue of password sharing not until 2025. Additionally, Disney expects its streaming service to achieve profitability in the fourth quarter of fiscal 2024.

In its various segments, Disney reported revenue of $9.5 billion in the entertainment sector, $3.9 billion in the sports segment, and $8.2 billion in the experience segment, which encompasses theme parks, cruises, hotels, and licensed products.

CEO Robert Iger expressed satisfaction with the progress made, emphasizing the company’s transition from a phase of repair to a phase of growth.

Looking ahead, Disney anticipates capital expenditures to increase in fiscal 2024 due to investments in new cruise ships set to launch in 2025 and 2026. The company also expects content spending to decrease slightly in fiscal 2024. Disney interim CFO Kevin Lansberry announced plans to recommend resuming dividend payments before the end of the calendar year, with an expected $8 billion in free cash flow in fiscal 2024.

Disney stock rises despite its recent challenges, Disney aims to explore potential asset sales and implement strategic changes, including potential partnerships for ESPN, under the leadership of CEO Robert Iger. The company remains determined to navigate the evolving media landscape. Source thedailycourierng news

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