Disney is about to announce its second-quarter results. Analysts are focusing on subscriber growth and profit prospects for its streaming service Disney+, as well as the performance of its theme park business.
- Disney will announce its second-quarter earnings report in advance of the US stock market on Tuesday.
- This will be the company's first earnings call since winning an agency battle with Trian Partners.
- Analysts expect Disney (DIS.N) earnings per share of $1.10 and revenue of $22.11 billion, according to LSEG. Wall Street will also be watching the latest developments in its streaming and theme park business.
On Tuesday, Disney (DIS.N) will release financial results for the second fiscal quarter. Analysts will focus on the company's streaming user growth and prospects, as well as the number of visitors to theme parks.
More than a year ago, Disney CEO Bob Iger announced a restructuring plan to restructure the company, lay off thousands of employees, and cut costs by $5.5 billion. This will also be the first earnings conference call since Disney won a battle for agency rights with Nelson Peltz's fund Trian Partners.
According to LSEG, Wall Street expects Disney to earn $1.10 per share and expect revenue of $22.11 billion.
Subscriber growth for its flagship streaming service Disney+ will once again be a top priority. Bank of America securities analyst Jessica Reif Ehrlich said on CNBC's “Squawk Box” program on Monday that the streaming service is expected to be profitable in the fourth quarter of 2024.
Last quarter, losses in Disney's direct-to-consumer division (which includes Hulu and ESPN+) narrowed to $1.05 billion from $1.05 billion in the same period last year to $216 million.
The company reported in February that Disney+'s core users declined by 1.3 million in the current quarter compared to the previous quarter due to price increases, although the company said average user revenue had increased due to the same reason.
Wall Street will also be watching the latest developments in Hulu's integration with Disney+, as well as Comcast's (CMCSA.O) valuation process for Hulu shares.
Visitor traffic to Disney theme parks in the US will also receive attention. A research report released by Deutsche Bank on Monday showed that last year's growth had begun to slow due to fewer people in Orlando.
Comcast recently reported a slowdown in growth at its Universal Orlando theme park and pointed to increased competition, particularly from cruise ships. Analyst Reif Ehrlich notes that this could be beneficial to Disney because it has a new cruise ship.