Walt Disney Co. experienced a significant rise in profits for the fourth fiscal quarter, surpassing the predictions of market analysts, which resulted in its stock value increasing by over 3% after the market closed.
From its headquarters in San Francisco, Walt Disney Co. announced a substantial increase in profits for the quarter ending September 30. The company’s diluted net income attributable to its operations soared by 63%, reaching $264 million, a notable rise from the $162 million reported in the same period the previous year. Excluding certain items primarily associated with the amortization of its acquisitions of 21st Century Fox and Hulu, Disney’s diluted earnings per share surged to 82 cents from the 30 cents reported a year ago, topping the analyst projections of 71 cents as compiled by FactSet.
Following this news, Disney’s shares experienced an uptick, rising to $87.23 in after-hours trading. The company’s quarterly revenue also saw an increase of 5.4%, climbing to $21.24 billion from the prior year’s $20.15 billion. This growth has been attributed to strategic cost reductions and other streamlining measures, alongside a boost in the company’s streaming subscriptions and a 30% rise in operating income from its theme parks and related “experiences” over the last year.
During a discussion with financial analysts, CEO Bob Iger conveyed that the company’s commitment to reducing costs has been effective, prompting an upward revision of its savings goal to $7.5 billion annually, up from the previously stated $5.5 billion.
