Disney earnings beat estimates in first results since proxy battle

Investing.com -- Walt Disney (NYSE: DIS) has reported adjusted earnings per share of $1.21 in its fiscal second-quarter, topping Wall Street estimates, as the entertainment giant's executive team looks to turn the page after emerging victorious in a fierce proxy battle earlier this year.

California-based Disney also improved its guidance for full-year per-share income growth to 25%, up from its prior outlook of 20%.

In a statement, Chief Executive Bob Iger, who was at the center of a fight with activist investors led by Trian Partners boss Nelson Peltz, said that a turnaround push he has been helming is yielding "positive results." He pointed in particular to a surprise operating profit of $47 million at its direct-to-consumer (DTC) entertainment streaming service, which includes offerings like Disney+ and Hulu, as well as its crucial parks business.

Although the DTC segment is seen delivering "softer" results in the current quarter, Iger added that he still expects Disney's overall streaming business, which he has flagged as a key part of an ongoing drive to revive the firm's share price performance, to be profitable by the fourth quarter.

Group-wide revenues for the quarter jumped to $22.08 billion from $21.8B a year ago, compared to Bloomberg consensus estimates of $22.1B.

"[W]e are delivering on our strategic priorities and building for the future,” Iger said.

Shares in Disney were lower in premarket U.S. trading on Tuesday.

This is a developing story. Please check back later for updates.

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