Disney reported better-than-expected results for the fourth quarter while management presented a strategy to spur on growth at the media giant, which is under pressure from activist hedge fund Trian Fund Management.
Disney’s adjusted per-share earnings in the quarter ended September 30 came in at $0.82, topping an average forecast of $0.70 while the $21.4 billion in revenues was roughly in line with analyst estimates. The company’s flagship streaming service Disney+ added 6.9 million core subscribers, with the global count reaching 150.2 million at the end of the quarter.
The company’s shares were up more than 4% in pre-market trading Thursday.
Alongside the earnings report, CEO Bob Iger unveiled his vision for Disney, identifying the company’s streaming, theme parks, studios and the ESPN sports network as the building blocks for future growth.
The company also revealed plans to cut $2 billion more in expenses than previously announced, which brings targeted annualized savings to $7.5 billion. The company’s experiences segment, which includes theme parks and cruise ships reported operating income rising 31% year-over-year to $1.76 billion.
The results come as activist investor Nelson Peltz, is reportedly ready to reignite his board push at the media giant. Peltz’s firm Trian is understood to have a stake worth $2.5 billion.
Rumors surfaced last month that Trian was preparing to ask Disney for multiple board seats, including one for Peltz, who earlier this year pulled a bid to join Disney’s board after the company announced a series of cost saving measures as part of a wide-ranging reorganization.
Disney this week named PepsiCo veteran Hugh Johnston as its new chief financial officer. Johnston currently serves in the same role at beverage giant PepsiCo, where he also holds the vice chairman seat.