The “Partners” statue of Walt Disney and Mickey Mouse at Cinderella Castle at Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida, on Saturday, June 3, 2023.
Joe Burbank | Tribune News Service | Getty Images
Disney The company is due to report earnings before the close of trading, and Wall Street will be focusing on the company’s continued turnaround since Bob Iger returns as CEO in 2022, particularly the performance of its streaming and theme parks businesses.
According to LSEG, here’s what Wall Street expects Disney to report:
Earnings per share: expected $1.19 Revenue: expected $23,071 million
In the streaming sector, Disney+ and Hulu both reported profits for the first time last quarter.
In Disney’s second quarter, Disney+ Core subscribers (excluding Disney+ Hotstar in India and other countries in the region) increased by more than 6 million, reaching 117.6 million worldwide. Total Hulu subscribers increased 1% to 50.2 million, while ESPN+ subscribers fell 2% to 24.8 million.
Like the rest of the media industry, Wall Street is keeping a close eye on Disney’s streaming division (which includes Disney+, Hulu and ESPN+), especially since the company has said it aims to achieve profitability for the combined service by the end of the year.
Disney came close to reaching that milestone last quarter thanks to Disney+ and Hulu, but “ESPN+’s continued losses and weak guidance … suggest the road ahead will be difficult,” said Paul Barna, eMarketer’s vice president of content.
During the company’s last earnings call, executives warned that they didn’t expect customer growth in the third quarter, but expected a return to growth in the fourth quarter.
While ESPN+ has been a drag on Disney’s streaming division, its TV networks division remains a bright spot for the company’s traditional TV business, which is expected to falter as customers continue to unsubscribe from pay-TV bundles.
Meanwhile, Disney’s theme park division is also a key focus as it is a major driver of the company’s profits, and the status of Disney parks in the US will be closely watched.
Disney has committed to investing $60 billion in its theme parks over the next decade, underscoring how important the business is to the company.
Last quarter, U.S. theme parks and experiences revenue rose 7% to $5.96 billion, while international sales rose 29% to $1.52 billion, driven by higher attendance and prices at Hong Kong Disneyland Resort. eMarketer’s Barna expects theme parks’ “positive momentum” to continue.
But Disneyland Resort in California has been struggling with declining profits, with executives attributing the year-over-year decline to cost inflation, including higher labor costs.
last month ComcastComcast’s profits have been squeezed by Universal’s theme parks, which the company blames for increased competition from cruise ships and international tourism. Nevertheless, Comcast executives said they remain “bullish” about the business, especially with new theme parks opening in 2025.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
