Walt Disney (NYSE:DIS) updated its annual forecast positively following better-than-expected fiscal first-quarter earnings, attributed to effective cost reductions within its streaming operations.

The company’s shares rose more than 11% intra-day today after the announcement.

Walt Disney disclosed an adjusted earnings per share (EPS) of $1.22 against revenues of $23.55 billion for the quarter, compared to the EPS of $1 on revenues of $23.75 billion predicted by analysts.

The improvement in earnings is largely due to the company’s successful cost-cutting strategy, which saved more than $500 million across its operations in the first quarter alone. Disney is confident in achieving its goal of $7.5 billion in annualized savings by the end of fiscal 2024.

Looking forward, Disney revised its expectations for the full fiscal year of 2024, now anticipating at least a 20% increase in adjusted EPS compared to 2023, aiming for about $4.60.

For the second quarter, Disney’s streaming service, Disney+, is expected to see net additions of core subscribers ranging between 5.5 million to 6 million, according to the company’s projections.

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