Disney's first-quarter earnings report exceeded expectations, with revenue and earnings per share both coming in higher than anticipated. The company's DTC streaming unit demonstrated significant profitability improvements, while CEO Bob Iger and CFO Hugh Johnston expressed confidence in the company's future.
Disney delivered a strong first quarter, exceeding both revenue and earnings expectations. Revenue for the three months ended December 31st rose 5% to $24.69 billion, surpassing estimates of $24.62 billion. Adjusted earnings per share (EPS) reached $1.76, significantly higher than the consensus estimate of $1.45. On a year-over-year basis, adjusted EPS soared 44%. While the stock experienced volatility, initially falling after the conference call began, it ultimately closed slightly lower.
CEO Bob Iger and CFO Hugh Johnston painted a positive outlook for the future, emphasizing Disney's cost-cutting efforts and the strength of its brand. Disney reiterated its full-year guidance of high-single-digit EPS growth, despite the strong earnings beat. CFO Johnston explained this decision as a reflection of the rapidly evolving economic environment and a desire to avoid premature revisions. Disney's entertainment segment, particularly its direct-to-consumer (DTC) streaming unit, demonstrated significant improvements in profitability. Disney+'s first-quarter profit reached $293 million, exceeding expectations and marking a substantial turnaround from last year's loss. Despite a slight decline in Disney+ subscribers following a price increase, the DTC segment's performance highlights Disney's success in transforming it from a money-losing venture into a profit driver. This success, coupled with the company's cost-cutting measures and strong brand recognition, reinforces the positive outlook for Disney's future
DISNEY EARNINGS STREAMING DTC COST-CUTTING PROFITABILITY ENTERTAINMENT
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