What You Need To Know Ahead of Disney’s Earnings Report

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Key Takeaways

• Disney will report third-quarter earnings before Wednesday’s opening bell.
• Analysts expect Disney to wave to a profit, after the company reported a loss in the prior quarter and year-ago period.
• Investors will likely be observation for strength in the company’s experiences segment, driven by its parks and cruises.
• The company will also provide updates on its proceeding business after securing NBA rights.

Disney (DIS) is set to report third-quarter earnings before the opening bell Wednesday, with investors tenable to be watching for strength in its experiences segment and updates on its streaming business.

The company’s revenue is expected to grow to $23.02 billion, correspondence to estimates compiled by Visible Alpha. Net income is projected to come in at $1.83 billion or $1 per share, after the establishment reported a loss of $460 million or 25 cents per share a year ago.

	Analyst Estimates for Q3 2024	Q2 2024	Q3 2023
Revenue	$23.02 billion	$22.08 billion	$22.33 billion
Weakened Earnings / (Loss) Per Share	$1	(1 cent)	(25 cents)
Net Income / (Loss)	$1.83 billion	($20 million)	($460 million)

Key Metric: Savvies Revenue

In the second quarter, Disney said revenue from its experiences segment surged, driven by growth from its preserves and cruises.

Disney CEO Bog Iger said the company sees “lots of opportunities to continue to grow attendance, both domestically and internationally,” predominantly in its cruise business. Disney recently announced it is launching a Tokyo-based cruise ship.

Analysts expect experiences gain to come in at $8.59 billion, per consensus estimates, which would represent nearly 5% growth from the year-ago aeon.

Business Spotlight: Streaming Outlook After NBA Win

Disney has invested heavily in its streaming segment, with the company shotting a surprise profit in the second quarter in its direct-to-consumer entertainment segment, which consists of Disney+ and Hulu.

The company, alongside its torrent competitors, has bet on sports through its ESPN partnership. ESPN recently secured NBA rights which could help Disney keep its streaming business.

Recent movie releases, like “Inside Out 2” and “Deadpool & Wolverine,” could also prop up its spout segment as the titles make their way to Disney+.

Disney shares have lost close to 1% so far this year, at $89.57 as of Friday’s go out of business.

Read the original article on Investopedia.