Media giant Walt Disney Co DIS could show off continued direct-to-consumer strength and how its sports and theme park segments are helping grow revenue when the company reports first-quarter financial results before market open Wednesday.
Earnings Estimates: Analysts expect Disney to report first-quarter revenue of $24.6 billion, up from $23.6 billion in last year’s first quarter, according to data from Benzinga Pro.
Disney has beaten analyst estimates for revenue in two straight quarters and five of the past 10 quarters.
Analysts expect Disney to report first-quarter earnings per share of $1.45, up from $1.22 in last year’s first quarter. The company has beaten analyst estimates in six straight quarters and eight of the past 10 quarters overall.
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What Analysts Are Saying: Goldman Sachs analyst Michael Ng sees sports, DTC and experiences the key items to watch in Disney’s first-quarter financial results.
The analyst reiterated a Buy rating and raised the price target from $137 to $139 in January.
Ng said Disney could beat earnings per share estimates thanks to several business units and the company’s Experiences and Sports EBIT figures will likely be higher than analyst estimates.
The analyst said the box office performance for “Moana 2” and “Mufasa: The Lion King” could help boost content sales and licensing EBIT in the quarter.
For direct-to-consumer, the analyst forecasts flat Disney+ core net adds, which is higher than the consensus estimate of a decline of 1.0 million.
“Looking ahead, we model +6.5 mn Disney+ Core net adds in F2025 driven by demand from an attractive pay-1 window for theatrical titles and the password sharing crackdown.”
The analyst said investor sentiment on the theme parks demand recovery and growth outlooks are helping boost the shares.
“Since its F4Q24 earnings report (11/14/24) where DIS introduced three-year forward guidance above-consensus estimates, DIS shares have outperformed the market,” Ng said.
The analyst also highlighted the ESPN DTC launch, which still has question marks on pricing and early promotion. Ng said this could be a key item discussed by the company on future earnings calls.
“We view DIS as a high-quality EPS compounder at an undemanding valuation.”
In December, Rosenblatt analyst Barton Crockett said Disney could have bright days ahead thanks to theme parks and streaming.
At that time, the analyst maintained a Buy rating on Disney and raised the price target from $122 to $135.
“A northward re-rating for Disney can be supported by rising confidence in portfolio durability and growth trajectory and less concern about exposure to secular pressures on linear TV and competition in streaming,” Crockett said.
Disney’s confidence in high single-digit earnings per share growth in 2025, and double-digit growth in 2026 and 2027 appears aggressive, Crockett says. But it could become a reality, he adds, after hearing more details from new CFO Hugh Johnson last week.
The analyst said cross-promotion reduced churn and Disney+ is enjoying a lift in subscribers thanks to several hit films. The release of movies like “Deadpool & Wolverine,” “Inside Out 2” and “Moana 2” on Disney+ could help boost subscriber growth ahead.
Crockett says DTC streaming is “the leading driver of segment profit growth in F2026.”
Here are other recent analyst ratings on Disney and their price targets:
- Citigroup: Reinstated Buy rating, $125 price target
- Redburn Atlantic: Upgraded from Neutral to Buy, raised the price target from $100 to $147
- Macquarie: Maintained Neutral rating, $110 price target
Key Items to Watch: Disney+ subscriber numbers will be one of the most watched metrics when Disney reports as the financial results come after Netflix recently had its best-ever quarterly paid members addition.
The company continues to see declining revenue for its Linear Networks, which has mostly been offset by DTC and Content Sales/Licensing revenue. Investors and analysts will watch to see if that is the same again.
Last earnings report, Disney saw “Inside Out 2” and “Deadpool & Wolverine” help boost operating income and the company could show “Moana 2” and “Mufasa: The Lion King” doing the same this quarter.
DIS Price Action: Disney stock is down 1.06% to $112.83 on Tuesday versus a 52-week trading range of $83.91 to $123.74. Disney stock is up 17% over the past year.
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