On Feb. 7, Walt Disney Company (DIS) shares rose as much as 10.5% - their biggest intraday gain since December 2020 - after the media giant reported better-than-expected results for its fiscal first quarter. Adjusted earnings came in at $1.22 a share, which beat the 99-cent average of Wall Street estimates. And thanks to cost cutting, Disney said profits this year will rise by at least 20% to about $4.60 a share, again topping Wall Street estimates of $4.27.
The company said it had reduced expenses by $500 million in the first quarter, and also predicted it would meet or exceed its target of $7.5 billion in annualized savings this year. After years of underperformance, is DIS finally a buy?
