Disney will unveil its fiscal Q2 earnings prior to market open on Tuesday, with analysts closely monitoring streaming subscriber growth, theme park visitation figures, and future prospects. Over a year has passed since CEO Bob Iger implemented a corporate restructuring, resulting in significant structural changes, extensive job cuts, and substantial cost reductions totaling $5.5 billion. Additionally, this earnings call marks Disney's first since prevailing in a proxy battle against Nelson Peltz's Trian Partners.
According to LSEG, Wall Street anticipates the following figures for Tuesday's report:
- Expected Earnings per Share: $1.10
- Expected Revenue: $22.11 billion
The primary spotlight will once again be on the growth of Disney's flagship streaming platform, Disney+. BofA Securities analyst Jessica Reif Ehrlich highlighted on CNBC's "Squawk Box" that profitability for streaming is projected to be achieved in Q4 of 2024. In the previous quarter, Disney's direct-to-consumer segment, encompassing Hulu and ESPN+, narrowed its losses to $216 million from $1.05 billion compared to the same period a year earlier.
Although Disney+ core subscribers declined by 1.3 million in the last quarter due to price increases, the company observed a rise in average revenue per user. Updates on the integration of Hulu into Disney+ and the valuation process of Comcast's stake in Hulu will be sought by investors.
Attention will also be directed towards visitor traffic at Disney's U.S. theme parks, particularly after growth began to decelerate last year, notably in Orlando as indicated by a Deutsche Bank research note. Comcast's recent report of a slowdown at its Universal Orlando theme park due to heightened competition, particularly from cruises, could potentially benefit Disney, given its launch of a new cruise ship.
