Overview
- On the earnings call and in a CNBC interview, CFO Hugh Johnston said Disney does not expect to make significant M&A moves and will let rivals’ actions play out.
- Johnston credited past deals for Fox, Lucasfilm and Pixar for giving Disney a robust library that reduces any need for further large-scale acquisitions.
- Disney reported adjusted EPS of $1.11, topping estimates, on revenue of $22.5 billion that slightly missed forecasts, and shares fell about 7% on the day.
- The company raised its dividend by 50% and doubled its share repurchase authorization to $7 billion, moves Johnston framed as signals of durable cash flow.
- Industry consolidation talk continues around Warner Bros. Discovery’s strategic review with interest from Paramount, Netflix and Comcast, while Paramount Skydance and Netflix have publicly stressed a cautious, build-over-buy posture.