Media giant The Walt Disney Company
Here's what analysts predict for earnings, their insights, and key points to watch in the report and conference call.
Earnings Estimates: Analysts expect Disney to report second-quarter revenue of $22.12 billion, according to data from Benzinga Pro.
The estimated revenue would come in higher than last year's second-quarter total of $21.82 billion. Disney has missed revenue estimates from analysts in three of the last five quarters.
Analysts expect Disney to report second-quarter earnings per share of $1.10, compared to 93 cents per share reported in last year's second quarter. The company has beaten earnings per share estimates from analysts in four of the last five quarters, with the other quarter coming in-line with estimates.
Guidance from the company calls for full-year earnings per share of $4.60, which would amount to a 20% year-over-year improvement.
What Analysts Are Saying: A growth-focused approach from Disney CEO Bob Iger was praised by Bank of America analyst Jessica Reif Ehrlich in an early April note.
"Bob Iger now appears to be in command and control and on a growth offensive," Ehrlich said.
The analyst, who has a Buy rating, raised the price target from $130 to $145 at the time.
Ehrlich said Disney's theme park sector is showing strong performance. A carriage deal with Charter could provide a boost to net subscriber growth for Disney+ in the second quarter, the analyst said.
The analyst predicts Disney will add 7.5 million new Disney+ subscribers in the second quarter.
Here are other recent analyst ratings for Disney ahead of the second-quarter earnings report.
- Deutsche Bank: Buy rating, raised price target from $125 to $130
- Wells Fargo: Overweight rating, raised price target from $128 to $141
- JPMorgan: Overweight rating, raised price target from $120 to $140
- Evercore ISI Group: Outperform rating, raised price target from $115 to $130
- Guggenheim: Buy rating, raised price target from $125 to $140
- Rosenblatt: Buy rating, raised price target from $129 to $137
- Needham: Buy rating, $145 price target
Disney reported 111.3 million Disney+ Core subscribers at the end of the first quarter, which was down 1% quarter-over-quarter. The company's guidance calls for adding six million Disney+ Core subscribers in the second quarter.
Subscribers could be added thanks to the carriage deal with Charter, but also due to some new content in the quarter.
Disney landed the rights to the record-breaking Taylor Swift concert film. Released on March 14 on Disney+, "The Eras Tour (Taylor's Version)" may have brought new subscribers or returning subscribers to the platform in the quarter.
A report from Deadline said 4.6 million people watched the film in its first three days of streaming on Disney+.
Another potential hit for Disney in the second quarter was newly released episodes of the hit show "Bluey." The show debuted on Disney+ in 2020 and has become one of the most-watched shows in the U.S. New episodes from the third season joined Disney+ in January. Data from Nielsen shows "Bluey" as the most streamed show in the U.S. in 2024 based on viewing time.
The success of "Bluey" could continue into the third quarter, with the longest episode in series history "The Sign" hitting Disney+ on April 14. The episode had 10.4 million views globally in its first week.
The success of Disney+ and its popular releases may offset Disney's disappointing box office performance this year, with no films in the top 10 for the first four months of 2024.
Disney does have future blockbusters "Inside Out 2" and "Deadpool & Wolverine" being released in theaters in June and July, respectfully.
Investors and analysts will also be tracking cost cuts by Disney and its continued plans to right size the company.
"We are on track to meet or exceed our $7.5 billion annualized savings target by the end of fiscal 2024, while we continue to look for further efficiency opportunities," Disney said in its first-quarter earnings report.
DIS Price Action: Disney shares are up 2.5% to $116.58 on Monday, versus a 52-week trading range of $78.73 to $123.74. Disney shares are up 29% year-to-date in 2024.
