Disney lifts dividends 50% after better-than-forecast quarter
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The news: Walt Disney Co. has lifted its dividend by 50% and outlined a share buyback after reporting better-than-expected earnings for the December quarter.
The numbers: The company posted earnings of USD1.22 ($1.87) per share, ahead of analysts’ consensus forecasts of 99 US cents, while quarterly revenue was comparable to a year ago, at USD23.5 billion. The company declared a dividend of 45 US cents a share, a 50% increase from a year ago, and its board also authorised a USD3 billion share buyback for the current fiscal year.
The context: Disney shares jumped more than 7% in after-hours trading in New York. The company reaffirmed guidance that its streaming business would reach profitability by September. In addition, it also made a slew of announcements, including a USD1.5 billion investment in Fortnite maker Epic Games as well as the long-anticipated plans to launch a streaming service of its ESPN sports network in 2025.
The company's experiences unit, which includes its theme parks and consumer products, posted record revenue, operating income and operating margins.
