Disney plans to reinstate its dividend and cut 7,000 jobs. Stock jumps.

9 FEB, 2023

By Monu Jha

Walt Disney DIS +0.13% shares jumped Wednesday after the entertainment giant topped earnings expectations while also announcing its plans to cut jobs and restore its dividend.

According to FactSet, Disney reported non-GAAP earnings of 99 cents per share, which was ahead of estimates of 78 cents per share.

Sales in the Disney Media and Entertainment Distribution segment increased 1% year over year to $14.78 billion.

The unit, which includes Disney streaming services such as Disney+ and Hulu, posted sales of $5.31 billion, slightly below estimates of $5.44 billion.

"After a solid first quarter, we are beginning a significant transformation that will maximize the potential of our world-class creative teams and our unique brands and franchises," CEO Bob Iger said in the earnings statement.

Total Disney+ paid subscribers declined 1% sequentially to 161.8 million but beat estimates for 161.1 million.

Core Disney+ subscribers grew 1% to 104.3 million, excluding Disney+ Hotstar subscriptions. Total Hulu subscribers grew by 2% to 48 million. ESPN+ subscribers grew 2% to 24.9 million.

Disney stock, which was initially up 3% on the earnings news, soared as much as 9% after the company launched its earnings call.