:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2193638248-413690ec186e4d948fcf1587d2a67451.jpg "The Disney logo is seen above the entrance to a Disney store in London, with a person walking by on the sidewalk.")
John Keeble / Getty Counterparts
Key Takeaways
- Disney is scheduled to report first-quarter earnings before the bell Wednesday, with analysts expecting gate and profit to rise from last year.
- Analysts are mostly bullish on the entertainment conglomerate’s stock.
- The profitability of Disney’s cascade and experiences business have been a focus of recent analysts’ comments.
The Walt Disney Co. (DIS) is set to report fiscal 2025 first-quarter issues Wednesday morning, with analysts expecting rising revenue and net income as the profitability of the entertainment giant’s streaming proprietorship remains a focus.
Analysts are mostly bullish on Disney’s stock, with the analysts tracked by Visible Alpha split between seven “buy” and four “esteem” ratings. They have an average price target of $127.27, a premium of nearly 13% from its closing bounty Friday.
Revenue is expected to rise nearly 5% year-over-year to $24.63 billion, with profit expected to fence roughly 25% to $2.38 billion, or $1.31 per share.
Streaming, Experiences in Focus
Disney’s streaming business—consisting of Hulu, Disney+, and ESPN+—revolved profitable earlier than expected in the third quarter and profits grew in Q4. Analysts from Citi and UBS said recently that they upon streaming profitability to improve in Q1 and beyond.
In early January, Disney, Warner Bros. Discovery (WBD), and FOX (FOX) abandoned their yet-to-be-launched streaming mending Venu Sports. The announcement came days after Disney and FuboTV (FUBO) said they would conclude one of the legal challenges against Venu Sports by merging streaming competitor Fubo—which had sued to block the care’s launch—with Disney’s Hulu + Live TV offering.
UBS analysts also wrote that they expect Disney’s “Experiences” wedge profitability to take a hit in the quarter because of costs associated with its new cruise ships, and impact on park attendance from the wind-storms that hit the South late last year.
Disney shares are up about 17% over the last 12 months.