As Disney gears up to reveal its third-quarter earnings report, all eyes are eagerly set on the magical empire’s latest performance, particularly its burgeoning streaming business and always-popular theme parks.
The California-based entertainment powerhouse is anticipated to report an EPS of $1.19 on revenue of $23.09 billion—a promising 8.7% uptick from previous figures. Following a notable return to profit in its streaming sector last May, CEO Bob Iger assures that the company is on course for full profitability in this division by the fourth quarter, despite predicting a softer Q3 due to the seasonality of Indian sports streaming.
The launch of Disney+ in 2019 was a strategic move to rival industry giants like Netflix, and while this new venture has seen its share of growing pains, the long-term vision remains optimistic. “Content strength is key to shares over time and should benefit Disney+ revenue growth along the way,” opines Morgan Stanley analyst Benjamin Swinburne, though caution is advised by Loop Capital, mirroring the struggles faced by competitors like Comcast.
Meanwhile, Disney’s beloved theme parks are also navigating through economic waves, with analysts expressing concerns over higher operational costs and the volatile macroeconomic landscape. Yet, the success of recent blockbusters such as Pixar’s “Inside Out 2” and Marvel’s “Deadpool & Wolverine,” brings a hopeful forecast to Disney’s studio segment.
Analysts and investors alike have been bullish on Disney, with steady beats in EPS estimates over the past two years. While some recent revisions have been downward, the sentiment remains strong, and the market awaits with bated breath to see if Disney will continue to conjure up magical results.
What are your thoughts on Disney’s upcoming earnings report? Share your thoughts in the comments and let’s discuss the future of this iconic brand!
Source: Tiyashi Datta
