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Bob Iger<\/a>\u2019s second act at Disney<\/a> is turning out to be just the thing the media behemoth needed to turn things around if its most recent earnings are any indication.<\/p>\n The company reported earnings per share of $1.02 for the first quarter, beating analyst estimates<\/a> of 99 cents, but revenue was flat, falling short of expectations at $23.5 billion. Disney guided to full-year earnings per share that would trounce its 2023 full-year results by 20%<\/a>.<\/p>\n The company\u2019s stock rose by as much as 12%<\/a> on Thursday in part because of the announcements of a $1.5 billion bet on Fortnite video game creator Epic Games, a soon-to-come ESPN streaming service<\/a>, and other guidance for Disney+ to turn a profit by the end of year.\u00a0<\/p>\n Still more important is the executive leading the charge on the initiatives, CEO Bob Iger, who previously ran the company for 15 years before retiring briefly<\/a>. He returned<\/a> to the top job in November 2022, and his impact has already given investors hope that Disney is close to a turnaround after two tumultuous years under former chief executive Bob Chapek<\/a>.\u00a0<\/p>\n In a Thursday note, analysts at Bank of America<\/a> Research gave credit to Iger for \u201cdecisive action.\u201d The analysts added that the 72-year-old executive was taking \u201cbold, decisive steps,\u201d by entering into a partnership for a new sports app with Fox<\/a> and Warner Bros. Discovery<\/a>, as well as by refocusing the company on its film division and expanding its investments in theme parks and gaming.<\/p>\n \u201cIn a little over a year since returning to the company as CEO, Bob Iger\u2019s actions are already having an impact,\u201d the analysts wrote.<\/p>\n To be sure, Iger is still facing criticism from activist investor and founding partner of Trian Partners Nelson Peltz<\/a>, who has launched a proxy fight against Disney and is looking to get control of seats on the board<\/a>. Peltz said last month that the company was \u201cnot being run properly,\u201d<\/a> and has complained about Disney underperforming the S&P 500.\u00a0<\/p>\n \u201cI made a run at them last year, they promised they were going to improve things\u2014things got worse,\u201d he told CNBC<\/a>. \u201cThe stock went down, results got worse.\u201d<\/p>\n Trian Partners did not immediately return a request for comment.<\/p>\n Still, Iger said in a statement<\/a> that the company had \u201cturned the corner and entered a new era\u2026\u201d In an interview with CNBC he also took a veiled shot at Peltz and his activist efforts.<\/p>\n \u201cThe last thing that we need right now is to be distracted in terms of our time, our energy, by an activist, or activists that, frankly, have a completely different agenda, and don\u2019t understand our company, its assets, even the essence of the Disney brand.\u201d<\/p>\n Disney did not respond to Fortune<\/em>\u2019s request for comment.<\/p>\n Despite the strong forward guidance, Iger has plenty of obstacles ahead of him, and a ticking clock as the pressure for him to name a successor mounts with no clear candidate in line<\/a>.<\/p>\n Possibly the most visible challenge will be revitalizing the company\u2019s film division after successive box office duds<\/a> in 2023.<\/p>\n Since Disney acquired it in 2009, Marvel Studios has been a cash cow for the company, grossing $30 billion in 15 years, playing a big role in redefining the franchise movie and, arguably, rebuilding the bygone studio system<\/a> of the 1930s.<\/p>\n Yet, the kingdom, which peaked with the nearly $2.8 billion-grossing \u201cAvengers: Endgame<\/a>,\u201d a follow-up to the $2 billion-grossing \u201cAvengers: Infinity War<\/a>,\u201d had indisputable bombs in 2023, notably \u201cThe Marvels,\u201d which brought in just $46 million in domestic sales despite costing more than $200 million to produce. The company is now pinning its hopes on the summer release of \u201cDeadpool 3\u201d to help bring Marvel back to its glory.<\/p>\n And in the streaming industry, where even Iger admits the company is 10 years behind<\/a> market leader Netflix<\/a>, Disney has yet to turn a profit. The company managed to cut its operating losses down from the $1.1 billion it recorded last year, but is still $216 million in the hole for the division which includes Disney+, Hulu<\/a>, ESPN+, and its Indian streaming platform Hotstar. Although revenue was higher due to a subscription price hike<\/a>, the company lost subscribers on its flagship Disney+ streaming service.<\/p>\n At the same time, Iger has taken a closer look at the company\u2019s linear media properties, including ABC, Disney Channel, FX, and National Geographic, and considered whether it might be the time to sell<\/a>.<\/p>\n For all the roadblocks on the way to bringing Disney back in line with what shareholders expect, Iger also gave himself credit in an interview with CNBC<\/a> for the progress the company has already made in overcoming the \u201cconsiderable challenges\u201d it faced at the time of his return in 2022.<\/p>\n \u201cI think, if you look at the results that we just announced and all the things that we\u2019re talking about, that is the result of a team that is motivated, that is focused,\u201d he said.<\/p>\n<\/div>\n\nIger\u2019s infinity war<\/strong><\/h2>\n
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