Your cart is currently empty!
What Analysts Think of Disney Stock Ahead of Earnings
Key Takeaways
- Disney is scheduled to report first-quarter earnings before the bell Wednesday, with analysts expecting revenue and profit to rise from last year.
- Analysts are mostly bullish on the entertainment conglomerate’s stock.
- The profitability of Disney’s streaming and experiences business have been a focus of recent analysts’ comments.
The Walt Disney Co. (DIS) is set to report fiscal 2025 first-quarter results Wednesday morning, with analysts expecting rising revenue and net income as the profitability of the entertainment giant’s streaming business remains a focus.
Analysts are mostly bullish on Disney’s stock, with the analysts tracked by Visible Alpha split between seven “buy” and four “hold” ratings. They have an average price target of $127.27, a premium of nearly 13% from its closing price Friday.
Revenue is expected to rise nearly 5% year-over-year to $24.63 billion, with profit expected to jump 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+—turned profitable earlier than expected in the third quarter and profits grew in Q4. Analysts from Citi and UBS said recently that they expect 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 service Venu Sports. The announcement came days after Disney and FuboTV (FUBO) said they would resolve one of the legal challenges against Venu Sports by merging streaming competitor Fubo—which had sued to block the service’s launch—with Disney’s Hulu + Live TV offering.
UBS analysts also wrote that they expect Disney’s “Experiences” segment profitability to take a hit in the quarter because of costs associated with its new cruise ships, and impact on park attendance from the hurricanes that hit the South late last year.
Disney shares are up about 17% over the last 12 months.
With Disney set to report its latest earnings, analysts are closely watching the entertainment giant’s stock performance. Many analysts have expressed optimism about Disney’s future prospects, citing its strong content portfolio and growing streaming services.
Analysts at Morgan Stanley recently reiterated their “overweight” rating on Disney stock, citing the company’s strong position in the streaming market with Disney+ and Hulu. They also highlighted Disney’s diversified revenue streams, which include theme parks, media networks, and consumer products.
Meanwhile, analysts at Goldman Sachs have a “buy” rating on Disney stock, noting the company’s strong content pipeline and potential for international growth. They believe that Disney’s recent acquisition of 21st Century Fox assets will further bolster its position in the entertainment industry.
On the other hand, some analysts have expressed caution about Disney’s stock ahead of earnings. Analysts at J.P. Morgan have a “neutral” rating on Disney stock, citing concerns about the impact of the COVID-19 pandemic on the company’s theme parks and film production.
Overall, analysts seem to be cautiously optimistic about Disney’s stock ahead of earnings, with many highlighting the company’s strong content offerings and potential for growth in streaming. It will be interesting to see how Disney performs in its upcoming earnings report and how the market reacts to the results.
Tags:
Disney stock, Disney earnings, Disney stock forecast, Disney financial analysis, Disney stock analysts, Disney stock performance, Disney stock price, Disney stock news, Disney stock outlook
#Analysts #Disney #Stock #Ahead #Earnings
Leave a Reply