Walt Disney's Earnings Impressive, but Activist Investor Nelson Peltz Remains Unconvinced

Walt Disney's fiscal-fourth-quarter earnings have pleased shareholders, leading to a 6.9% increase in the company's stock on Thursday. This marks the largest daily percentage increase since December 2020. The media and entertainment giant has announced its intention to further enhance cost-cutting measures by an additional $2 billion and explore the reinstatement of dividends.

These cost-cutting efforts were initially implemented to fend off an activist campaign by Nelson Peltz's Trian Fund Management earlier this year. However, as Disney's stock continued to decline, Peltz and former Marvel executive Isaac "Ike" Perlmutter, who has entrusted his Disney stake to Trian, have renewed their attack.

While some experts anticipate Peltz to persist in his efforts, it is worth noting that previous cost-cutting campaigns at Disney were eventually forgotten. Don Bilson, an event-driven analyst at Gordon Haskett, suggests that the gains achieved during Peltz's previous campaign vanished once he backed off, allowing the company some breathing room.

Now, with Perlmutter's support emboldening Peltz, it is speculated that he desires more than the single board seat he sought during his initial Disney campaign. The nomination window for Disney's board will open next month. Trian declined to comment on its plans, and Disney has not yet responded to a request for comment.