Walt Disney Co. reported sharp profit growth for its fiscal fourth quarter, exceeding analyst expectations and sending its shares up more than 3% in after-hours trading.
Disney said diluted net income attributable to the company jumped 63% to $264 million in the quarter that ended September 30, up from $162 million a year earlier. Diluted earnings per share, which excludes items largely related to the amortization of Disney's acquisitions of 21st Century Fox and Hulu, more than doubled to 82 cents in the quarter from 30 cents a year earlier. That exceeded analyst expectations of 71 cents, according to FactSet.
Disney shares rose more than 3% in after hours trading to $87.23.
Revenue for the quarter rose 5.4% to $21.24 billion, up from $20.15 billion. The company credited cost-cutting and other efficiencies from restructuring as well as continued subscription growth in its streaming business and a 30% increase in operating income from its parks and similar “experiences” compared to the prior year.
In a call with analysts, Chief Executive Officer Bob Iger said the company's focus on cost-cutting has led it to raise its annualized target for efficiency improvements to $7.5 billion from $5.5 billion previously.
