Disney beats on earnings, boosts dividend as streaming losses narrow

Disney (DIS) announced it would boost its cash dividend by 50% on Wednesday as the company reported fiscal first quarter earnings that beat expectations while streaming losses narrowed.

Disney reported adjusted earnings of $1.22 a share — a significant beat compared to the $0.99 analysts polled by Bloomberg had expected. The company also guided to full-year fiscal 2024 earnings of $4.60 a share, an increase of at least 20% versus 2023.

Revenue came in at $23.5 billion, a slight miss compared to the $23.8 billion expected.

The company announced a cash divided of $0.45 a share, an increase of 50% versus the last dividend paid in January. The dividend will be payable on July 25 to shareholders of record at the close of business on July 8.

The board also approved a new share repurchase program, targeting $3 billion in purchases in fiscal 2024.

Disney has been grappling with challenges that include a declining linear TV business, slower growth in its parks business, and losses in streaming. Last year, activist investor Nelson Peltz renewed his push to shake up the board as the stock price hit multiyear lows.

CEO Bob Iger has committed to various cost cuts to combat those challenges. The company said Wednesday it’s on track to meet or exceed its $7.5 billion annualized savings target by the end of fiscal 2024, adding it will “continue to look for further efficiency opportunities.”

Shares jumped about 7% in after-hours trading following the results.

New announcements: Games, content, sports

Disney had a lot to say on Wednesday with a slew of fresh announcements.

Notably, the company said it plans to invest $1.5 billion in Fortnite maker Epic Games with Iger calling it Disney’s “biggest entry ever into the world of video games.”

“Our new relationship with Epic Games will create a transformational games and entertainment universe that integrates Disney’s world-class storytelling into Epic’s cultural phenomenon, Fortnite, enabling consumers to play, watch, create, and shop for…