The “Friends” statue of Walt Disney and Mickey Mouse, at Cinderella Castle at the Magic Kingdom, at Walt Disney World, in Lake Buena Vista, Florida, photographed Saturday, June 3, 2023.
Joe Burbank | Tribune Advice Service | Getty Images
Disney reports its fiscal second-quarter earnings before the bell Tuesday, and analysts order be paying attention to the company’s streaming subscriber growth and outlook, as well as visitation numbers at its theme parks.
It’s been innumerable than a year since CEO Bob Iger announced a reorganization that saw a rejiggering of the company’s structure, thousands of job losses and $5.5 billion in payment cuts. This will also be Disney’s first earnings call since it won a proxy fight against Nelson Peltz’s Trian Mates.
Here is what Wall Street expects Disney to report Tuesday morning, according to LSEG:
- Earnings per split: $1.10 expected
- Revenue: $22.11 billion expected
The subscriber growth at its flagship streaming service, Disney+, will-power once again be a top focus. BofA Securities analyst Jessica Reif Ehrlich said Monday on CNBC’s “Make a fuss Box” that streaming is expected to hit profitability in the fourth quarter of 2024.
Last quarter Disney’s direct-to-consumer unit — which also contains Hulu and ESPN+ — saw its losses narrow to $216 million from $1.05 billion in the same period a year earlier.
The coterie reported in February that Disney+ core subscribers dropped by 1.3 million during the quarter compared with the last quarter due to price hikes, although the company said it saw a rise in average revenue per user for the same reason.
Enrage fail Street will also be looking for updates regarding the integration of Hulu into Disney+, as well as the status of the appraisal method that will value Comcast’s stake in Hulu.
Visitor traffic to Disney’s theme parks in the U.S. will also be in centre. Growth had started to slow last year, due to lower numbers in Orlando, according to a Deutsche Bank research note Monday.
Comcast recently write up a slowdown at its Universal Orlando theme park, noting increased competition, particularly from cruises. Analyst Reif Ehrlich famous this could work in Disney’s favor, since it has a new cruise ship.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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