Shares of Walt Disney (DIS -0.04%) surged this week, jumping as much as 13.4%, according to data supplied by S&P Global Market Intelligence. By the time the market closed on Friday, the stock was still up 11.6%.

The catalyst that sent the media company higher was Disney's quarterly-financial results and a number of ancillary announcements that put the magic back in the stock.

Bringing the magic

For its fiscal 2024 first quarter (ended Dec. 30), the company reported revenue of $23.5 billion, which was flat year over year. While that might not seem like reason to celebrate, the company's cost cutting measures boosted profitability, as adjusted earnings per share (EPS) jumped 23% to $1.22. Disney said it is on track to "meet or exceed" its cost cutting goal of $7.5 billion by the end of fiscal 2024.

For context, revenue was in line with analysts' consensus estimates, but Wall Street expected EPS of just $0.99, so Disney was more profitable by far.

While shareholders celebrated the financial improvements, there were a number of other developments that really got the party started.

  • Disney said the company is on track and expects its streaming segment will turn profitable by the end of 2024. It went further, saying it "believes this business will be a key earnings growth driver" going forward.
  • The company increased its semi-annual dividend by 50% to $0.45 per share, and the board of directors approved a $3 billion stock buyback for 2024.
  • Disney's ESPN entered into a new joint venture with Fox and Warner Bros. Discovery to create a new streaming sports service that will debut this fall. The company also announced that ESPN would launch as a stand-alone streaming service in 2025.
  • Disney announced a $1.5 billion equity stake in Epic Games, creator of the iconic Fortnite video game. The company will lend its characters and stories from Marvel, Star Wars, Pixar, and Disney to create a "transformational new games and entertainment universe."
  • Disney+ will become the exclusive streaming home of Taylor Swift's viral concert film Taylor Swift: The Eras Tour, Taylor's Version.

Suffice it to say there was a lot for investors to like, with a little something for everyone. This could finally be the start of the turnaround that investors have been waiting for.