After the close of U.S. stocks on Wednesday, the Walt Disney Company released its first-quarter earnings report, with overall results outperforming expectations。At the heart of this achievement is the company's strong cost-cutting strategy, with the company planning to cut spending by at least $7.5 billion by the end of fiscal 2024.。The Company forecasts earnings per share of approximately 4.$60, up 20% from 2023。Driven by this strong performance, Disney shares rose about 7% in after-hours trading。

Financial Highlights

Disney Reports Adjusted EPS of 1.$22, beating expectations of 99 cents。However, revenue remained relatively stagnant at 235.$500 million, slightly below expectations of 236.$400 million。The company's net profit rose sharply to 19.$100 million (1 per share.04 USD), compared to last year's 12.$800 million (70 cents per share) up。Despite lackluster revenue growth, growth in net profit shows strong financials。

Success in Streaming Media and Direct Marketing

One notable achievement for Disney was reducing its streaming losses。The Direct Marketing segment reported 1.$3.8 billion in operating loss, compared to 10.$500 million loss improved significantly。Despite a decline in Disney + core subscribers due to higher prices, the company says。Average user revenue increased。In addition, Disney announced a $1.5 billion investment in Epic Games and plans to launch the ESPN streaming service in 2025, indicating its strategic expansion in the digital media space.。

Investor Relations and Future Prospects

Disney CEO Bob Iger is committed to revitalizing Disney's film lineup by focusing on original content rather than sequels。However, the significant box office impact of these efforts is not expected to be felt until 2025 or 2026, with simultaneous releases of major titles such as Avatar, Star Wars and The Avengers.。

Revenue by department

Disney's new financial reporting structure divides the company into three segments: Entertainment, Sports (ESPN) and Experience。Entertainment segment revenue fell 7 percent to 99 percent, impacted by lower linear network and licensing fees.800 million dollars。In contrast, revenue in the direct sales segment increased 15% to 55.500 million dollars。ESPN's revenue increased 4% to 48.$400 million, which was attributed to increased subscription revenue and lower production costs。Despite low attendance at Florida theme parks, revenue from the Experience segment, which includes theme parks, hotels and cruise ships, rose 7 percent to 91 percent..300 million dollars。

Market forecast

In the short term, Disney's market outlook is more positive, mainly due to its solid financial results, strategic investments in streaming and digital businesses, and upcoming blockbusters.。In addition, the company's focus on cost management, as well as diversified revenue streams, put it in a good position in the next few years。