Essential Insights Before Disney’s Upcoming Earnings Announcement

Highlights to Watch

• Disney is scheduled to release its third-quarter earnings before the market opens on Wednesday.
• Experts anticipate a return to profitability for Disney, following losses reported in the previous quarter and the same period last year.
• Investors will closely monitor the robust performance of Disney’s experiences division, particularly its theme parks and cruise operations.
• Updates on Disney’s streaming platform, bolstered by new NBA broadcasting rights, are also expected.

Disney (DIS) is preparing to announce its third-quarter financial results ahead of Wednesday’s market open. Market participants are eager to evaluate the strength of Disney’s experiences segment and gain insight into its evolving streaming business.

Revenue projections stand at approximately $23.02 billion, based on Visible Alpha’s data, while net income is forecasted at $1.83 billion, equating to $1 per share. This marks a significant turnaround from the $460 million loss, or 25 cents per share, reported during the same quarter last year.

Focus Metric: Growth in Experiences Revenue

In the previous quarter, Disney’s experiences segment saw substantial revenue growth, driven largely by increased attendance at parks and cruises.

CEO Bob Iger highlighted numerous opportunities to boost attendance both domestically and internationally, with particular emphasis on expanding the cruise business. Notably, Disney has announced plans to launch a new cruise ship based in Tokyo.

Analysts estimate that experiences revenue will reach $8.59 billion this quarter, reflecting nearly a 5% increase compared to last year.

Streaming Business: Outlook Following NBA Rights Acquisition

Disney has made significant investments in its streaming services, which include Disney+ and Hulu. The company surprised many with a profitable second quarter in its direct-to-consumer entertainment segment.

Partnering with ESPN, Disney secured NBA broadcasting rights, a strategic move expected to enhance its streaming platform’s appeal and subscriber growth.

Upcoming movie releases such as "Inside Out 2" and "Deadpool & Wolverine" are anticipated to further strengthen Disney+ content offerings, potentially driving subscriber engagement.

Disney’s stock has experienced a slight decline of nearly 1% year-to-date, closing at $89.57 on Friday.

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