DIS - Disney Tries to Win Back Shareholders With $6 Billion of Dividends and Buybacks
2024-02-11 06:45:00 ET
Walt Disney (NYSE: DIS) has "turned the corner," according to CEO Bob Iger. The company's results for the first quarter of fiscal 2024 were mixed relative to analyst expectations, but a surge in profit was enough to convince investors to push up the stock on Thursday.
Disney's adjusted earnings per share shot up 23% year over year to $1.22, and the company believes EPS will grow by at least 20% in fiscal 2024. What's more, Disney sees free cash flow coming in at roughly $8 billion for the year, up from just $4.9 billion in fiscal 2023.
This improved cash generation will enable Disney to ramp up its dividend and restart share buybacks. Disney announced that it was boosting its quarterly dividend payment by 50% to $0.45 per share, and the company plans to spend about $3 billion in fiscal 2024 on share buybacks. The new dividend plus the share buybacks add up to more than $6 billion of capital returns to shareholders over the next year.
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Disney Tries to Win Back Shareholders With $6 Billion of Dividends and Buybacks