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What Analysts Think of Disney Stock Ahead of Earnings: A Comprehensive Analysis

The Walt Disney Co. (DIS) is set to report its fiscal 2025 first-quarter results on Wednesday morning, and analysts are expecting rising revenue and net income. With a focus on the profitability of Disney’s streaming and experiences business, analysts are mostly bullish on the entertainment conglomerate’s stock.

Analysts’ Expectations

Analysts tracked by Visible Alpha are split between seven “buy” and four “hold” ratings, with an average price target of $127.27, a premium of nearly 13% from its closing price on 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 Business: A Key Focus

Disney’s streaming business, consisting of Hulu, Disney+, and ESPN+, turned profitable earlier than expected in the third quarter, and profits grew in the fourth quarter. Analysts from Citi and UBS expect streaming profitability to improve in the first quarter and beyond.

Recent Developments: Venu Sports and FuboTV

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.

Analysts’ Comments

Analysts from Citi and UBS recently commented on Disney’s streaming business, noting that they expect profitability to improve in the first quarter and beyond. They also highlighted the importance of Disney’s experiences business, which includes its theme parks and resorts.

Key Takeaways

1. Disney’s first-quarter earnings: The company is set to report its fiscal 2025 first-quarter results on Wednesday morning.
2. Analysts’ expectations: 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.
3. Streaming business: Disney’s streaming business turned profitable earlier than expected in the third quarter, and profits grew in the fourth quarter.
4. Venu Sports and FuboTV: Disney abandoned its yet-to-be-launched streaming service Venu Sports and merged streaming competitor Fubo with its Hulu + Live TV offering.
5. Analysts’ comments: Analysts from Citi and UBS expect streaming profitability to improve in the first quarter and beyond.

Conclusion

In conclusion, analysts are mostly bullish on Disney’s stock ahead of its first-quarter earnings report. With a focus on the profitability of Disney’s streaming and experiences business, analysts expect revenue and profit to rise from last year. As Disney continues to navigate the evolving media landscape, its streaming business and experiences segment will remain key areas of focus for investors.

Recommendations

1. Investors should keep a close eye on Disney’s Q1 earnings report: The report will provide valuable insights into the company’s revenue growth, profitability, and progress in its streaming and experiences business.
2. Analysts’ price targets should be monitored: The average price target of $127.27 suggests that analysts believe the stock has significant upside potential.
3. Investors should consider the risks and opportunities associated with Disney’s streaming business: The company’s streaming business is a key area of focus, and investors should consider the potential risks and opportunities associated with this segment.

Appendix

– Disney’s Q1 earnings report will provide valuable insights into the company’s revenue growth, profitability, and progress in its streaming and experiences business.
– Analysts’ price targets suggest that they believe the stock has significant upside potential.
– Disney’s streaming business is a key area of focus, and investors should consider the potential risks and opportunities associated with this segment.

Glossary

– Streaming business: A segment of Disney’s business that includes its streaming services, such as Hulu, Disney+, and ESPN+.
– Experiences business: A segment of Disney’s business that includes its theme parks and resorts.
– Visible Alpha: A platform that provides financial data and analytics to investors.

References

– Disney’s Q1 earnings report.
– Analysts’ research reports and price targets.
– Industry reports and research studies on the media and entertainment industry.

EXCERPT

 What Analysts Think of Disney Stock Ahead of Earnings KEY TAke AWAYS 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.1

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.23

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.

Source: Investopedia