Disney enthusiasts and Wall Street are all eyes and ears today as The Walt Disney Company is set to release its third-quarter earnings before the bell. The anticipations are as magical as the attractions in the theme parks, with Bob Iger’s return as CEO playing a significant role in the company’s turnaround journey since he stepped back into the leadership role in 2022.

Analysts from LSEG have set high expectations, with projected earnings per share pinned at $1.19 and revenue anticipated to hit $23.071 billion. The spotlight, however, is undoubtedly on Disney’s streaming segment — comprising Disney+, Hulu, and ESPN+ — which has been a focal point for investors eyeing the company’s trajectory towards profitability by year-end.

Last quarter painted a promising picture as Disney+ and Hulu reported their first-ever profit. Disney+ Core subscribers saw a significant rise, adding over 6 million new subscribers to reach 117.6 million globally, while Hulu’s subscriber base inched up by 1% to 50.2 million. On the flip side, ESPN+ faced a slight dip, with subscribers falling by 2% to 24.8 million. Despite the hurdles, Disney remains optimistic about returning to growth in the fourth quarter.

The theme parks division, the crowning jewel of Disney’s empire, remains another critical area. After a stellar last quarter where U.S. parks’ revenue increased by 7% and international sales soared by 29%, all eyes are once again on the parks. There has been a pledge of a massive $60 billion investment in the parks over the next decade, reflecting Disney’s commitment to keeping their magical experiences top-notch. Although Disneyland Resort in California faced lower profits attributed to cost inflation, the overall momentum remains positive.

It’s worth noting that the competitive landscape in the theme park industry is intensifying, as seen with Comcast’s recent earnings, which were impacted by competition from cruises and international tourism. Yet, the theme park sector remains a key profit driver for both companies, with sustained investments and expansions on the horizon.

What are your thoughts on Disney’s path towards profitability in the streaming segment and the investment in theme parks? Share your thoughts in the comments below and encourage your friends to join the conversation!

Source: Lillian Rizzo