Benzinga - Walt Disney Co (NYSE: DIS) shares traded higher late Wednesday after the company reported better-than-expected financial results and announced plans to cut 7,000 jobs.
The stock is pulling back a bit Thursday morning after activist investor Nelson Peltz said the proxy fight is over.
Peltz Declares Victory: Following a lengthy interview with CEO Robert Iger Thursday morning on CNBC's "Squawk On The Street," Peltz called into the show and told Jim Cramer the proxy fight has ended.
"These are exciting times," Peltz said. "This was a great win for all the shareholders."
Peltz attempted to join Disney's board at the beginning of the year, but Disney announced opposition to the move, sparking a proxy fight.
"Management at Disney now plans to do everything that we wanted them to do ... we will be watching, we will be rooting and the proxy fight is over," Peltz said.
Disney shares are up more than 30% year-to-date after catching a boost from the strong first-quarter report.
When Cramer asked Peltz how much money he made on his position, he laughed and said, "Who's counting?"
Q1 Earnings Rundown: Disney said fiscal first-quarter revenue increased 8% year-over-year to $23.51 billion, which beat average analyst estimates of $23.37 billion, according to Benzinga Pro. The company reported quarterly earnings of 99 cents per share, which beat estimates of 78 cents per share.
Media and Entertainment revenue was up 1% year-over-year, while Parks, Experiences and Products revenue jumped 21%.
Disney said Disney+ domestic subscribers totaled 46.6 million, up from 46.4 million year-over-year. International subs came in at 57.7 million, up from 56.5 million year-over-year.
"After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises," CEO Iger said.
"We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders."
Disney said it will reorganize into three units: Entertainment, ESPN and Theme Parks. The company plans to slash 7,000 jobs and is targeting $5.5 billion in savings. Disney also announced plans to restore its dividend by the end of the calendar year.
Check This Out: Disney Q1 Earnings Highlights: 7,000 Job Cuts Amid Reorganization, Theme Park Growth, Disney+ Subscribers And More
Disney Analyst Assessment: Several analysts raised price targets on the stock following the company's quarterly results.
- Keybanc analyst Brandon Nispel maintained Disney with an Overweight and raised the price target from $119 to $130.
- Wells Fargo analyst Steven Cahall maintained Disney with an Overweight and raised the price target from $125 to $141.
- Credit Suisse analyst Douglas Mitchelson maintained Disney with an Outperform and raised the price target from $126 to $133.
DIS Price Action: Disney has a 52-week high of $157.50 and a 52-week low of $84.07.
The stock was up more than 6% Thursday morning before pulling back on the Peltz announcement. It was up 1.58% at $113.54 at the time of writing, according to Benzinga Pro.
Photo: StockSnap from Pixabay.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.