Earnings Beat, Dividend Boost, Buyback
Disney exceeded earnings expectations, with diluted earnings per share (EPS) for the quarter increasing to $1.22 from $0.99 in the prior-year quarter. Revenues for the quarter were comparable to the prior-year quarter at $23.5 billion. Additionally, the Board of Directors approved a new share repurchase program in which they plan to target $3 billion in repurchases in fiscal 2024. Finally, a cash dividend of $0.45 per share was announced, an increase of 50% versus the previous dividend payment.
Streaming Progress
Disney+ continued its impressive growth trajectory, surpassing 225 million subscribers globally. Moreover, losses in the streaming segment narrowed, indicating progress towards profitability.
Guidance and Outlook
Disney provided optimistic guidance for the remainder of FY24, saying they are on track to meet or exceed their $7.5 billion annualized savings target by the end of fiscal 2024. They expect full-year fiscal 2024 earnings per share to increase by at least 20% versus 2023, to approximately $4.60.
Market Update Into September 7th: Inflation Data Incoming