The “Partners” statue of Walt Disney and Mickey Mouse, at Cinderella Castle in Magic Kingdom, at Walt Disney World, in Lake Buena Vista, Florida, photographed on Saturday, June 3, 2023.
Joe Burbank | Tribune news service | fake images
disney reports its fiscal second-quarter earnings before the bell on Tuesday, and analysts will pay attention to the growth and prospects of the company's streaming subscribers, as well as visitation numbers for its theme parks.
It's been more than a year since CEO Bob Iger announced a reorganization that involved a realignment of the company's structure, thousands of job losses and $5.5 billion in cost cuts. This will also be Disney's first earnings call since winning a proxy fight against Nelson Peltz's Trian Partners.
Here's what Wall Street expects Disney to report Tuesday morning, according to LSEG:
- Earnings per share: $1.10 expected
- Revenue: $22.11 billion expected
Subscriber growth on its main streaming service, Disney+, will once again be a priority. BofA Securities analyst Jessica Reif Ehrlich said Monday on CNBC's “Squawk Box” that streaming is expected to reach profitability in the fourth quarter of 2024.
Last quarter, Disney's direct-to-consumer unit, which also includes Hulu and ESPN+, saw its losses narrow to $216 million from $1.05 billion in the same period a year earlier.
The company reported in February that Disney+ core subscribers fell by 1.3 million during the quarter compared to the previous quarter due to price increases, although the company said it saw an increase in average revenue per user for the same reason. .
Wall Street will also be watching for updates on Hulu's integration into Disney+, as well as the status of the valuation process that will value Comcast's stake in Hulu.
Visitor traffic to Disney theme parks in the United States will also be in the spotlight. Growth had begun to slow last year, due to lower numbers in Orlando, according to a Deutsche Bank research note on Monday.
Comcast recently reported a slowdown at its Universal Orlando theme park, pointing to increased competition, particularly from cruise ships. Analyst Reif Ehrlich noted that this could work in Disney's favor as it has a new cruise ship.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
This is breaking news. Please check for updates.
