The “Partners” statue of Walt Disney and Mickey Mouse, at Cinderella Castle at the Magic Kingdom, at Walt Disney World, in Lake Buena Vista, Florida, photographed on Saturday, June 3, 2023.
Joe Burbank | Tribune News Service | Getty Images
Disney It reports its fiscal second-quarter earnings before the bell on Tuesday, and analysts will be interested in the company's streaming subscriber growth and outlook, as well as visitation numbers at its theme parks.
It's been more than a year since CEO Bob Iger announced a reorganization that saw the company's structure reorganized, thousands of jobs lost and costs cut by $5.5 billion. 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 announce Tuesday morning, according to LSEG:
Earnings per share: $1.10 expected Revenue: $22.11 billion expected
Subscriber growth for the leading streaming service, Disney+, will once again be a key focus. Streaming is expected to reach profitability in the fourth quarter of 2024, BofA Securities analyst Jessica Reeve Ehrlich said Monday on CNBC's “Squawk Box.”
Disney's direct-to-consumer unit — which also includes Hulu and ESPN+ — last quarter saw its losses narrow to $216 million from $1.05 billion in the same period a year earlier.
The company reported in February that the number of basic Disney+ subscribers fell by 1.3 million during the quarter compared to the previous quarter due to higher prices, though the company said it saw average revenue per user rise for the same reason.
Wall Street will also be looking 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.
The focus will also be on visitor traffic to Disney theme parks in the United States. Growth began to slow last year, due to lower numbers in Orlando, according to a research note released by Deutsche Bank on Monday.
Comcast recently reported a slowdown at its Universal Orlando theme park, citing increased competition, especially from cruises. Analyst Reeve 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.
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