DIS - Disney: A Turnaround Appears Imminent

2024-03-20 00:00:41 ET

Summary

• Disney reported a significant increase in capital returns and narrowed losses in its direct-to-consumer business in the December quarter.
• DIS's CEO announced a 50% increase in the quarterly dividend and a $3.0B billion stock buyback, making the company an attractive option for investors seeking income.
• Shares have revaluation potential as the company moves toward operating income profitability in DTC for the first time ever in FY 2024.

Shares of Disney ( DIS ) went into a new up-leg after the entertainment company announced that it will massively increase in its capital returns in FY 2024. Disney also reported that losses in its direct-to-consumer business narrowed significantly in the December quarter which makes it likely that the streaming company will be able to report its first-ever operating profit in its DTC business this year. With more capital returns awaiting shareholders, Disney's shares are now much more attractive for investors from a capital return point of view as well. With shares trading at a reasonable P/E ratio, I believe Disney remains a very interesting investment for investors in 2024....

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