Moreover, the company announced plans to implement further cost-cutting measures, targeting an additional $2 billion in expense reductions. This positive financial performance and strategic cost management appear to have resonated positively with investors, contributing to the observed increase in Disney's stock.
The company reported an adjusted earnings per share of 82 cents on revenue of $21.24 billion. Analysts were looking for a profit per share of 69 cents on sales of $21.43 billion.
The number of Disney+ subscribers came in at 150.2 million, topping the expected 147.07 million. ESPN+ had 26 million paying users at the end of the quarter, while Hulu had 48.5 million.
Despite a solid earnings report, Disney shares reacted positively to the update that the company anticipates a substantial increase in free cash flow in fiscal 2024 compared to fiscal 2023.
The expectation is to achieve profitability for the combined streaming businesses in the fourth quarter of fiscal year 2024, although progress may exhibit non-linear patterns across quarters.
As a result, the management now expects to generate $7.5 billion in cost savings this year, up from the prior target of $5.5 billion.