The Walt Disney Company DIS is set to report second-quarter fiscal 2024 results on May 7.
As the media landscape shifts from traditional linear TV to streaming, Disney finds itself in an enviable position. With two robust U.S. streaming services, Disney+ and Hulu, complemented by ESPN+, the entertainment giant is well-equipped to navigate this transition seamlessly.
One of Disney’s key advantages is its bundling strategy, which combines these streaming services into a compelling package. This approach is not only expected to have boosted higher Average Revenue Per Account in the to-be-reported quarter but is also likely to have helped reduce customer churn.
DIS’ true strength lies in its unparalleled portfolio of Intellectual Property (IP). From the iconic Marvel and Star Wars franchises to the beloved Disney princesses, Mickey Mouse and Pixar’s timeless classics, the company owns the most powerful collection of IP in the media industry. This wealth of IP is a significant asset, as it gives audiences an immediate connection to the content, reducing the risk associated with content investments.
The company’s extensive library of IP not only fuels its studio operations but also underpins its entire business ecosystem, including streaming, linear networks and the profitable Parks, Experiences & Consumer Products segment.
Disney is benefiting from a solid revival in the domestic and international theme park businesses. Latest attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Park in Paris, as well as the Zootopia theme land at Shanghai Disney, are expected to have boosted the prospects of this Zacks Rank #2 (Buy) company’s theme park business in the fiscal second quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Parks, Experiences & Consumer Products revenues is pegged at $8.29 billion, indicating 6.7% growth year over year.
As audiences continue to embrace streaming platforms, Disney’s unique combination of beloved franchises and cutting-edge distribution channels positions the company for sustained success.
However, stiff competition from the likes of Amazon Prime Video and Netflix NFLX, as well as the growing prominence of services from Apple AAPL, Comcast CMCSA-owned Peacock and HBO Max, is expected to have hurt Disney+’s subscriber growth rate in the to-be-reported quarter.
DIS is likely to have suffered from a persistent decline in Linear TV revenues, which is expected to have negatively impacted Media and Entertainment Distribution revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for Media and Entertainment Distribution revenues is pegged at $9.77 billion, indicating a decrease of 30.4% year over year.
The Walt Disney Company Price and EPS Surprise
The Walt Disney Company price-eps-surprise | The Walt Disney Company Quote
Fiscal Q2 2024 Projections Hint at Favorable Outcomes
The Zacks Consensus Estimate for earnings has remained steady at $1.09 per share over the past 30 days, indicating growth of 17.02% year over year.
The consensus mark for revenues is pegged at $22.11 billion, suggesting modest growth of 1.34% from the year-ago quarter’s reported figure.
Disney’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.17%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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