(Bloomberg) — Walt Disney Co., embroiled in another fight with activist investor Nelson Peltz, posted fourth-quarter profit that beat analysts’ expectations and said it will cut an additional $2 billion in expenses. Most Read from BloombergRockstar Plans to Announce Much Anticipated ‘Grand Theft Auto VI’US 30-Year Mortgage Rate Tumbles by Most in More Than a YearVIX Notches Its Longest Slide Since October 2015: Markets WrapVirginia Democrats Fend Off Republican Sweep in Win for Abortion RightsX
Walt Disney Co., embroiled in another fight with activist investor Nelson Peltz, posted fourth-quarter profit that beat analysts’ expectations and said it will cut an additional $2 billion in expenses.
Fiscal fourth-quarter earnings rose to 82 cents a share, excluding some items, Disney said Wednesday. That beat the 69-cent average of analysts’ estimates compiled by Bloomberg. Revenue grew 5.4% to $21.2 billion, compared with estimates of $21.4 billion.
The added cost cutting will move Disney from “an era of fixing to an era of building,” Chief Executive Officer Bob Iger said on a call with investors. By the end of 2023, Disney plans to resume paying a dividend for the first time since the pandemic — addressing a concern raised by Peltz.
The activist investor, whose Trian Fund Management controls a roughly $2.5 billion stake in Disney, plans to seek several board seats at the Burbank, California-based company. Iger had previously committed to cutting more than $5.5 billion from annual expenses and has already eliminated 8,000 jobs this year.
The additional budget cuts announced Wednesday aren’t expected to result in another round of widespread job losses, the company said.
