The Walt Disney Company Prepares for Earnings Reveal Amidst Mixed Performance
Burbank, California-based The Walt Disney Company (DIS) operates as an entertainment powerhouse on a global scale. With a market capitalization of $195.7 billion, Disney’s diverse businesses encompass media networks, parks and resorts, studio entertainment, consumer products, and interactive media. The company is set to disclose its fiscal first-quarter earnings for 2025 before the market opens on Wednesday, February 5.
Analysts Anticipate Positive Earnings Growth
In anticipation of the earnings report, analysts project DIS will announce a profit of $1.45 per share on a diluted basis. This estimate reflects an 18.9% increase from $1.22 per share reported in the same quarter last year. Notably, the entertainment giant has consistently beat Wall Street’s EPS expectations in its last four quarterly reports.
Long-term EPS Growth Projections
For the entire fiscal year, projections suggest DIS will report earnings per share (EPS) of $5.41, marking an 8.9% rise from $4.97 achieved in fiscal 2024. The EPS is expected to further increase by 13.3%, reaching $6.13 in fiscal 2026.
Stock Performance Compared to the Market
Over the past 52 weeks, DIS stock has not kept up with the S&P 500’s ($SPX) impressive 22.1% gains, showing an increase of just 19.7% during this time. Additionally, it fell short of the Communication Services Select Sector SPDR ETF Fund’s (XLC) 29.4% rise in the same period.
Challenges in the Streaming Landscape
Disney has faced ongoing challenges in its transition to streaming, alongside a downturn in its traditional media operations. Concerns have also arisen from increasing operational costs, upcoming expenses related to Disney Cruise Line, and a conservative outlook on subscriber growth for Disney+, which have overshadowed some improvements in streaming profitability.
Recent Earnings Report and Consensus Outlook
On November 14, DIS shares rose by over 6% following the release of its Q4 results, where it reported an adjusted EPS of $1.14, exceeding Wall Street’s expectation of $1.09. Although the company reported revenue of $22.57 billion, this figure slightly missed forecasts that anticipated $22.59 billion.
Analysts hold a generally positive view of DIS stock, with a consensus “Strong Buy” rating. Among the 29 analysts covering Disney, 20 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and seven advise a “Hold.” The average analyst price target stands at $128.76, representing a potential upside of 19.1% from current trading levels.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
