As the anticipation builds around Disney, the entertainment giant is set to report its third-quarter earnings before the opening bell on Wednesday. This quarter is especially critical as investors have their eyes fixed on a potential profit turnaround after Disney reported losses in the previous quarter and the same period last year.
Revenue is projected to rise to an impressive $23.02 billion, up from $22.08 billion in Q2 2024 and $22.33 billion in Q3 2023. The key metric to watch here is the experiences segment—think parks, cruises, and all those magical moments that make Disney the powerhouse it is. CEO Bob Iger has expressed optimism about the growth opportunities in this segment, particularly in the cruise business, which is gearing up for a Tokyo-based cruise ship launch. Analysts are expecting experiences revenue to touch $8.59 billion, signaling a healthy growth of nearly 5% from the previous year.
Investors will also be closely monitoring Disney’s streaming business. Following their recent win securing NBA rights, all eyes are on how this could bolster their streaming platforms, Disney+ and Hulu. Not to be overlooked are recent movie hits like “Inside Out 2” and “Deadpool & Wolverine,” which are making their way to Disney+ and are expected to drive subscriber numbers up.
Despite these promising signs, Disney shares have shown a slight decline of nearly 1% year-to-date, closing at $89.57 last Friday. This earnings report could be the catalyst for a significant shift, potentially boosting investor confidence and stock performance.
What are your thoughts on Disney’s upcoming earnings report? Do you think the experiences and streaming segments will deliver as expected? Share your insights and join the conversation in the comments!
Source: Investopedia
