Adjusted earnings per share were $0.99 in the fiscal first quarter, ended December 31, beating the Refinitiv median estimate of $0.78.
Revenue reached $23.512 million, above Wall Street estimates of $23.4 billion.
Chief executive Bob Iger, who came out of retirement in November to run Disney for another two years, is under pressure to improve the House of Mouse’s financial results.
The company’s streaming business is losing money as traditional TV viewership dwindles. Investor Nelson Peltz is fighting to get on Disney’s board of directors, arguing that the company has spent too much on streaming and failed in succession planning.
Disney theme parks posted operating income of $3.1 billion in the quarter, up 25% from a year earlier, thanks to large numbers of people during the holiday season.
layoff announcement
Despite good financial results, Disney announced Wednesday that it will lay off 7,000 employees to cut costs. This was confirmed by its CEO, Bob Iger. The figure represents 3.2% of the total workforce. Despite the cuts, the company is looking for employees in Argentina.
According to Variety magazine, the decision aims to achieve a savings of US$5.5 billion. Iger explained that of that amount, $2.5 billion are “non-content costs.”
Disney seeks workers in Argentina: what positions are offered and what are the requirements
At the same time, he stated that a US$1 billion cut is already underway. Disney is seeking to carry out a $3 billion annualized reduction in non-sports content costs, Disney Chief Financial Officer Christine McCarthy told analysts.
Source: Ambito
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