Disney reports earnings before the market opens, and Wall Street can be closely watching the corporate's continued turnaround since Bob Iger returned as CEO in 2022 – particularly the outcomes of the corporate's streaming and theme park businesses.
According to LSEG, Wall Street expects the next from Disney:
- Earnings per share: 1.19 USD expected
- Revenue: 23.071 billion US dollars expected
In the streaming sector, Disney+ and Hulu made a profit for the primary time last quarter.
In Disney's second quarter, Disney+ Core subscribers – excluding Disney+ Hotstar in India and other countries within the region – grew by greater than 6 million to 117.6 million customers worldwide. Total Hulu subscribers increased 1% to 50.2 million, while ESPN+ subscribers fell 2% to 24.8 million.
Like all other media corporations, Wall Street is watching Disney's streaming division – which incorporates Disney+, Hulu and ESPN+ – very closely, especially because the corporate has announced that it plans to be profitable with the combined services by the top of the 12 months.
While Disney moved closer to that milestone last quarter due to Disney+ and Hulu, “continued losses at ESPN+ and weak guidance suggest we have a rocky road ahead,” said Paul Verna, vp of content at eMarketer.
During the corporate's last quarterly earnings call, executives warned that they didn’t expect customer growth within the third quarter, but expected a return to growth within the fourth quarter.
Although ESPN+ has weighed on Disney's streaming division, the TV network counterpart stays a brilliant spot for the corporate's traditional TV business. Still, that traditional TV business is anticipated to collapse as customers proceed to cancel pay-TV packages.
At the identical time, Disney's theme parks division is in focus, because it is the corporate's profit driver. The state of Disney's US parks is prone to be particularly interesting.
Disney has pledged to take a position $60 billion in its theme parks over the following decade – a transparent signal of the corporate’s importance.
Last quarter, revenue for the U.S. parks and experiences division rose 7% to $5.96 billion, while international revenue rose 29% to $1.52 billion on account of higher attendance and costs on the Hong Kong Disneyland Resort. Emarketer's Verna expects the “positive momentum” for the parks to proceed.
However, the Disneyland Resort in California was under pressure on account of lower profits. Management had attributed the year-on-year decline to cost inflation, including high labor costs.
Last month ComcastComcast's revenue was weighed down by Universal's theme parks, which the corporate attributed to increasing competition from cruises and international tourism. Despite this, Comcast executives said they remained “optimistic” concerning the business, especially given the opening of a brand new theme park in 2025.
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