Disney's Earnings Preview: Succession and Performance Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Fool
- Succession Uncertainty: With CEO Bob Iger's four-year contract nearing its end, the market anticipates an announcement of his successor during next week's earnings report, which could help Disney focus on future strategies without distractions at the shareholder meeting.
- Avatar Franchise Outlook: Despite 'Avatar: Fire and Ash' grossing $1.4 billion in 2025, it trails behind 'Ne Zha 2' and 'Zootopia 2', making the financial success of future sequels critical for Disney's long-term strategy and franchise viability.
- Dismal Earnings Expectations: Analysts predict Disney's upcoming earnings report will show less than 4% revenue growth to $25.6 billion, with EPS expected to decline by 11% to $1.57, raising concerns about the company's previously guided double-digit growth for 2026 and 2027.
- Stock Performance Decline: Despite beating earnings expectations in the last four quarters, Disney's stock has fallen 2% over the past year, indicating weakened market confidence in its sustained profitability, making the upcoming earnings report crucial for stock recovery.
Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIS is 137.29 USD with a low forecast of 123.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 110.610
Low
123.00
Averages
137.29
High
152.00
Current: 110.610
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.
