Disney's Earnings Call Preview Under New CEO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy DIS?
Source: CNBC
- Earnings Release: Disney is set to announce its fiscal Q2 results on Wednesday, with expected earnings per share of $1.49 and revenue of $24.78 billion, marking the first earnings call under new CEO Josh D'Amaro, following layoffs and political pressures.
- Competitive Market Pressure: As the streaming market consolidates, Disney faces competitive pressures from a potential merger between Paramount+ and HBO Max, which analysts believe could reset the competitive landscape for Disney+, impacting its future growth strategy.
- Traditional TV vs. Streaming: While streaming remains the primary focus, traditional TV continues to be a cash cow; investors are eager to see how Disney navigates the shift from pay TV to streaming and how streaming can compensate for declining advertising and distribution profits.
- Theme Park Performance: Disney's theme parks, a key profit driver, are expected to see
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.060
Low
123.00
Averages
137.29
High
152.00
Current: 108.060
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Optimism: Morgan Stanley analyst Sean Diffly noted that despite investor concerns regarding the macro environment and consumer state, Disney delivered strong growth across all segments, refining profit guidance and showcasing confidence in sustainable double-digit earnings growth.
- Strong Business Performance: JPMorgan analyst David Karnovsky highlighted that all Disney segments outperformed expectations, particularly in SVOD profitability for Entertainment, while Experiences benefited from solid consumer demand and capacity expansion.
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- Segment Performance: The entertainment segment saw a 10% revenue increase, including a 4% boost from the Fubo transaction, while higher subscription and affiliate fees contributed to overall revenue growth, reflecting success in content sales and theatrical distribution.
- Operating Income Improvement: Disney reported total segment operating income of $4.60 billion for the quarter, exceeding the consensus estimate of $4.38 billion, showcasing enhanced profitability across all business areas, especially with experiences segment income reaching $2.62 billion.
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- Earnings Guidance Cut: The company slashed its full-year earnings forecast from approximately $6 per share to a range of $3 to $3.50, nearly halving its expectations, primarily due to rising raw material inflation and increased net tariff impacts, indicating significant cost pressures.
- Dividend Suspension Strategy: Whirlpool has opted to suspend its dividend to prioritize debt repayment, demonstrating a conservative financial strategy aimed at enhancing fiscal stability amid increasing economic uncertainties.
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