According to a report by Bloomberg, Disney saw a major bounce back with a 10.5% intraday gain – the biggest since 2020 – after reporting better-than-expected earnings for its fiscal first quarter.
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The upbeat profit outlook for the year is sure to give Bob Iger a solid standing to counter Nelson Peltz and his proxy battles at the April 3 shareholder meeting.
Disney Spoilers – Beats Wall Street Estimates In Latest Earnings Call
The published earnings, excluding some items, rose to $1.22 a share, beating the 99-cent average of Wall Street estimates.
Last year, “The Marvels” and “Wish” were two movies that cut deep into Disney’s profits, leading to a $23.5 billion revenue in the period that ended on Dec. 30, almost matching the $23.8 billion average of estimates compiled by Bloomberg.
Disney shares rose 9.5% to $108.55 at 9:40 a.m. in New York on Thursday, Feb. 8. Due to cost-cutting, Disney is predicting that profit will soar at least 20% to about $4.60 a share this year, exceeding estimates of $4.27.
AMP in the post
Undoubtedly, these strong results are bound to work in Bob Iger’s favor when he fends off Trian Fund Management LP, which has nominated its founder Nelson Peltz and former Disney finance chief Jay Rasulo to the entertainment giant’s board.
The thing is, for Bob Iger to seamlessly take Disney to the new frontiers as he plans, he has made it clear that he does not need Nelson Peltz on the board.
So on April 3, the shareholders will have to decide whether bringing on Peltz – who has criticized Iger’s tenure as well – and cutting a board member is the best way or keeping Iger happy by retaining the board members that will actually allow him to actualize his vision.
“It is unfortunate that a company as iconic as Disney and with so many challenges and opportunities has refused to seriously engage with us, its largest active shareholder, about board representation,” Peltz said in his initial proxy statement last month.
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He added that the current board does not have enough “ownership mentality” to address some of the biggest issues at the company, including plans for a CEO successor, the path to streaming profitability, and a revamp of its box office.
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