The Walt Disney Co. experienced a significant boost in its stock price during extended trading on Wednesday following the release of its impressive earnings report. With a remarkable increase in streaming users and a pledge to raise annual cost cuts, Disney's stock climbed by 3.5%.

Disney's Chief Executive, Robert Iger, expressed his main focus on profitability by the end of fiscal 2024, aiming to grow free cash flow to levels last achieved before the pandemic hit. The company reported a fourth-quarter net income of $264 million or 14 cents per share. However, after adjusting for restructuring costs and other factors, Disney's earnings per share reached 82 cents. Moreover, revenue experienced a 5% rise, reaching $21.24 billion compared to last year's $20.15 billion.

Analysts polled by FactSet had previously projected adjusted earnings of 71 cents per share on a revenue estimate of $21.37 billion, indicating that Disney exceeded expectations.

Disney restructured its business segment reporting, with the entertainment section generating $9.52 billion in revenue, marking a 2% increase from the same quarter last year. Experiences, including parks and resorts, achieved $8.2 billion, indicating an 11% growth compared to last year's $7.3 billion. The sports segment, which includes ESPN, generated $3.9 billion in revenue. Iger highlighted the success of ESPN as the top brand on TikTok during a conference call with analysts.

Iger also emphasized that the advertising market is stronger than anticipated, attributing it to sales on Disney+ and Hulu. Notably, Disney+ gained nearly 7 million subscribers globally, resulting in a significantly lower quarterly loss of $387 million, compared to a loss of $1.47 billion in the same quarter the prior year. The popularity of movies like "Elemental," "Little Mermaid," and "Guardians of the Galaxy Vol. 3," as well as original series such as "Ahsoka" and the Korean original series "Moving," were credited for this achievement.

Disney has announced its plans to launch a combined streaming app for Disney+ and Hulu bundle subscribers in December, with an official launch slated for late March 2024. Additionally, Disney faces competition in the streaming market from media giant Apple Inc.

Despite facing various challenges, including a potential actors strike and a decline in attendance at Disney World Resort in Orlando, Florida, Disney remains optimistic. Iger mentioned that both domestic and international parks, as well as the cruise business, are performing well.

Disney's stock has experienced fluctuations, with its lowest point in nearly a decade occurring last year. However, since Iger's return as CEO a year ago, shares have fallen by 8%, and this year alone they have slipped by 2.7%. The S&P 500's performance is an additional consideration.

As Disney celebrates its 100th anniversary, the company remains focused on enhancing its streaming strategy and tackling the challenges ahead. With the impressive growth in streaming users and strong earnings, Disney continues to solidify its position as a major player in the entertainment industry.