The Walt Disney Company (NYSE:DIS) shares added over 6% in pre-market trading on Thursday, after the media and entertainment giant’s fiscal first-quarter earnings topped estimates.
For the quarter ended December 2023, Disney's adjusted earnings per share (EPS) were $1.22, up 23% from $0.99 in the year-ago quarter and ahead of estimates of $0.97.
Revenue was flat year over year at $23.5 billion, slightly below the $23.8 billion expected by Street analysts.
The company said its Disney+ subscribers decreased by 1.3 million sequentially, attributed to a price increase during the quarter and the wrap-up of its global summer promotion. Analysts had been calling for a loss of 700,000 subscribers during the quarter.
Looking ahead at the full year, Disney guided fiscal 2024 EPS of $4.60 per share, representing a 20% year-over-year increase. This was above the consensus estimate of $4.34 per Zacks Consensus Estimate.
It also expects to add between 5.5 million and 6 million Disney+ subscribers in the second quarter.
It noted that it is on track to meet or exceed its target of $7.5 billion in annual cost savings by the end of fiscal 2024.
“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company (NYSE:DIS) to a period of sustained growth and shareholder value creation,” Disney CEO Robert Iger said in a post-close statement on Wednesday.
“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.”
Disney shares were up 6.23% at $105.32.