Walt Disney and Mickey Mouse’s “Partner” statues at Cinderella Castle at Walt Disney World’s Magic Kingdom in Lake Buena Vista, Florida, on Saturday, June 3, 2023.
Joe Burbank | Tribune News Service | Getty Images
disney Analysts will focus on the company’s streaming subscriber growth and prospects as fiscal second-quarter earnings are released before the bell on Tuesday, as well as theme park attendance.
It’s been more than a year since Chief Executive Bob Iger announced a reorganization that restructured the company, resulting in thousands of job losses and $5.5 billion in cost cuts. It will also be Disney’s first earnings call since winning a proxy battle with Nelson Peltz’s Trian Partners.
According to LSEG, Wall Street expects Disney to release the following report on Tuesday morning:
- Earnings per share: $1.10 expected
- Revenue: Estimated $22.11 billion
User growth for its flagship streaming service Disney+ will once again be in focus. Bank of America Securities analyst Jessica Reif Ehrlich said on CNBC’s “Squawk Box” program on Monday that streaming media is expected to become profitable in the fourth quarter of 2024.
Last quarter, losses at Disney’s direct-to-consumer unit, which also includes Hulu and ESPN+, narrowed to $216 million from $1.05 billion a year earlier.
The company reported in February that the number of core Disney+ subscribers fell by 1.3 million this quarter from the previous quarter due to price increases, but it said average revenue per user increased for the same reason.
Wall Street will also be watching the latest news on Hulu’s integration with Disney+ and the status of the review process to value Comcast’s stake in Hulu.
Visitor traffic to Disney theme parks in the United States will also become a focus. A research note from Deutsche Bank on Monday showed growth began to slow last year as Orlando’s population shrank.
Comcast recently reported a slowdown in business at its Universal Orlando theme parks, citing increased competition, particularly from cruise ships. Analyst Reif Ehrlich noted that this could be good for Disney because it has a new cruise ship.
Revealed: Comcast is the parent company of NBCUniversal and CNBC.
This is breaking news. Please check back for updates.
About The Author
