Disney Stock Is Rising Thursday: What's Going On?

Walt Disney Co DIS shares are trading higher Thursday after the company reported fiscal first-quarter results and announced a new partnership. Multiple analysts also adjusted ratings and price targets on the stock.

What Happened: Disney reported fiscal first-quarter revenue of $23.5 billion, which missed the consensus estimate of $23.64 billion, according to Benzinga Pro. The company’s top-line results were flat on a year-over-year basis.

Disney reported quarterly adjusted earnings of $1.22 per share, which beat estimates of 99 cents per share.

“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation,” said Bob Iger, CEO of Disney.

“Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.”

Disney’s board approved a new share repurchase program. The company said it plans to target $3 billion in repurchases in fiscal year 2024. Disney also increased its cash dividend to 45 cents per share payable July 25 to shareholders of record as of July 8.

See Also: Disney+ Follows Netflix’s Footsteps In Password Sharing Crackdown: ‘Borrowers’ Will Have To Pay Up Or Get Booted Out

Disney said it expects full-year 2024 earnings of $4.60 per share, which would be an increase of about 20% on a year-over-year basis.

The company expects to add between 5.5 million and 6 million Disney+ Core subscribers in the second quarter. Disney reported 111.3 million Core Disney+ subscribers this quarter, representing a decrease of 1% year-over-year.

In a separate release, Disney announced a partnership with Fortnite maker Epic Games. The two companies will collaborate on an all-new games and entertainment universe that will expand the reach of Disney stories and experiences. Disney will invest $1.5 billion for an equity stake in Epic Games.

Check This Out: Disney Invests $1.5B In Fortnite Owner Epic Games In ‘Biggest Ever’ Gaming Entry, Posts Q1 Earnings Beat, Revenue Miss

Analyst Changes:

• Barclays analyst Kannan Venkateshwar maintained Disney with an Equal-Weight and raised the price target from $88 to $95.

• Goldman Sachs analyst Brett Feldman maintained Disney with a Buy and lowered the price target from $125 to $120.

• Deutsche Bank analyst Bryan Kraft maintained Disney with a Buy and raised the price target from $116 to $125.

• Needham analyst Laura Martin upgraded Disney from Hold to Buy and announced a $120 price target.

• Wells Fargo analyst Steven Cahall maintained Disney with an Overweight and raised the price target from $115 to $128.

DIS Price Action: Disney shares were up 8.52% at $107.42 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.