The “Partners” statue of Walt Disney and Mickey Mouse at Cinderella Castle in the Magic Kingdom, Walt Disney World, in Lake Buena Vista, Florida, photographed on Saturday, June 3, 2023.
Joe Burbank | Tribune News Service | Getty Images
Disney is reporting its fiscal second-quarter results on Tuesday, and analysts will be paying attention to the company’s streaming subscriber growth and prospects, as well as attendance at its theme parks.
It’s been more than a year since CEO Bob Iger announced a restructuring that entailed a realignment of the company’s structure, the loss of thousands of jobs and $5.5 billion in cost cuts. This will also be Disney’s first earnings release since the company won a proxy battle against Nelson Peltz’s Trian Partners.
According to LSEG, Wall Street expects Disney to report the following on Tuesday morning:
- Earnings per share: $1.10 expected
- Revenue: $22.11 billion expected
Subscriber growth for its flagship streaming service Disney+ will once again be the focus. BofA Securities analyst Jessica Reif Ehrlich said on CNBC’s “Squawk Box” on Monday that streaming is expected to break even in the fourth quarter of 2024.
In the most recent quarter, the loss at Disney’s direct-to-consumer division – which includes Hulu and ESPN+ – narrowed to $216 million, compared to $1.05 billion in the year-ago period.
The company reported in February that core Disney+ subscribers fell by 1.3 million during the quarter compared to the previous quarter due to price increases, although the company reported an increase in average revenue per user for the same reason.
Wall Street will also be looking for updates on Hulu’s integration with Disney+, as well as the status of the valuation process that will assess Comcast’s stake in Hulu.
The focus will also be on visitor traffic to Disney theme parks in the USA. A Deutsche Bank research report on Monday said growth began to slow last year, driven by lower numbers in Orlando.
Comcast recently reported a slowdown at its Universal Orlando theme park and noted increasing competition, particularly from cruises. Analyst Reif Ehrlich noted that this could work in Disney’s favor since the company has a new cruise ship.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
This is breaking news. Please check back for updates.
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2024-05-07 04:01:01
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