Disney to buy back up to $8 billion of stock in fiscal 2014
Disney will increase its stock buybacks to $6 billion to $8 billion in fiscal 2014, Chief Financial Officer Jay Rasulo told investors on Thursday, sending shares up 3 percent.
In recent years, Disney has been buying back about $4 billion in shares annually, Rasulo said at a Bank of America Merrill Lynch conference. He said Disney can boost the buybacks while maintaining its credit rating. The company may borrow some cash "to provide capital at the tail end of that plan," he said.
The company's fiscal year begins in October.
Disney shares jumped 3.3 percent to $66.06 after Rasulo's remarks. What's Disney's stock doing now. (Click here to get the latest quote.)
Rasulo also said Disney will limit its spending on big films that are not part of established franchises. Rasulo previously projected Disney will lose up to $190 million on its expensive summer movie bomb "The Lone Ranger."
"We have learned there needs to be a cap on tentpole nonfranchise movies," he said. "Going forward you will see a cap on spending on those movies."