Walt Disney and Mickey Mouse “Partner” statues at Cinderella Castle at Walt Disney World's Magic Kingdom in Lake Buena Vista, Florida, on Saturday, June 3, 2023.
Joe Burbank | Tribune News Service | Getty Images
disney The earnings report will be released before the market opens. Since Bob Iger returned as CEO in 2022, Wall Street will pay close attention to the company's continued turnaround, especially the performance of the company's streaming media and theme park businesses.
According to LSEG, Wall Street expects Disney to report the following:
- Earnings per share: Estimated $1.19
- income: Estimated US$23.071 billion
In the streaming space, Disney+ and Hulu posted profits for the first time last quarter.
During Disney's second quarter, Disney+ core subscribers (excluding Disney+ Hotstar in India and other countries in the region) grew by more than 6 million, bringing the number of global customers to 117.6 million. The total number of Hulu users increased by 1% to 50.2 million; at the same time, the number of ESPN+ subscribers fell by 2% to 24.8 million.
Like all of its media peers, Wall Street is keeping a close eye on Disney's streaming division, which includes Disney+, Hulu and ESPN+, especially since the company has said it aims to make the combined service profitable by the end of the year.
Paul Verna, eMarketer's vice president of content, said that while Disney came closer to that milestone last quarter with Disney+ and Hulu, “continued losses and soft guidance for ESPN+ … indicate a bumpy road ahead.”
On the company's last earnings call, executives warned that they didn't expect to add customers in the third quarter but expected a return to growth in the fourth quarter.
While ESPN+ has put pressure on Disney's streaming division, its network unit remains a bright spot in the company's traditional TV business. Still, the traditional TV business is expected to decline as customers continue to cut back on pay-TV bundles.
Meanwhile, Disney's theme park divisions are also a key focus as they have been the company's profit driver. The condition of certain Disney U.S. parks is of particular interest.
Disney's commitment to invest $60 billion in its theme parks over the next decade is a clear indication of the importance of the business.
Last quarter, U.S. Parks and Experiences segment revenue rose 7% to $5.96 billion, and international sales soared 29% to $1.52 billion, driven by higher attendance and prices at Hong Kong Disneyland Resort. Emarketer's Verna expects the park to continue to have “positive momentum.”
However, Disneyland in California is facing downward pressure on profits. Executives attributed the annual decrease to cost inflation, including high labor expenses.
last month ComcastThe company's profits were dragged down by Universal's theme parks, which it attributed to increased competition from cruise ships and international tourism. Still, Comcast executives said they remain “bullish” on the business, especially with the opening of a new theme park in 2025.
Revealed: Comcast owns NBCUniversal, the parent company of CNBC.