Disney (DIS+0.80%) is gearing up to report its first-fiscal quarter results Wednesday morning before the bell, offering shareholders a crucial look at whether the company can keep up last year’s momentum.
The House of Mouse had a stellar 2024. Its streaming business finally turned a profit, and its movie studios dominated the box office with hits like Inside Out 2, Deadpool & Wolverine, and the highly anticipated Moana 2. The media giant’s stock rose nearly 20% over the past 12 months.
But can Disney keep the magic going? Not all of its divisions are thriving — its broadcast and cable networks are struggling, and two Hurricanes toward the end of last year may have dented its theme park attendance.
Overall, analysts currently expect Disney’s revenue to rise nearly 5% year over year to $24.7 billion for the three months ending in December, according to a consensus estimate from FactSet (FDS-1.02%).
Here is what to look for in Disney’s upcoming earnings report:
Disney may have been late to the streaming game — its flagship platform, Disney+, launched in 2019, more than a decade after Netflix (NFLX+0.49%) — but it has finally hit its stride. After five years, the company’s streaming division, which now includes Hulu and ESPN+, turned a profit for the first time last year. And more recently, Disney expanded its portfolio by acquiring the sports-centric FuboTV and has raised its prices.
At the box office, Disney has made a strong comeback after disruptions from the pandemic and Hollywood strikes. This month, Disney is gearing up to premiere its next superhero blockbuster Captain America: Brave New World and is already teasing its next franchise the Fantastic Four. The company may also reveal new projects on its movie slate on Wednesday.
Still, not everything is smooth sailing. Disney’s linear TV business continues to struggle, threatening to weigh down its overall performance. Yet, unlike some of its competitors, the company remains committed to its broadcast and cable networks — for now.
Disney’s theme parks and other experiences — such as its hotels and cruise ships — are expected to report a profit decline in the first quarter, as this segment of the company was impacted by several disruptions, such as hurricanes Helene and Milton. Adding to the pressure, Disney is facing hefty expenses as it invests $12 billion to expand its cruise ship fleet.
Wall Street analysts anticipate operating income for the parks and experiences division to drop over 5% to $2.2 billion, according to FactSet.
Investors will also be keeping a close eye on any updates about Disney’s search for its next CEO.
Disney said in October that it would announce Iger’s successor in early 2026, as it looks to replace its CEO — again. The search — which will include internal and external candidates — will be led by Disney’s new chairman James P. Gorman.
In August, Gorman was tasked with the difficult job of leading the search committee for Disney’s next CEO — a job that didn’t go so well the first time, as Iger and his successor Bob Chapek’s relationship soured almost immediately due to differences in leadership style.
Iger, who has been with the media behemoth for four decades, served as its CEO from 2005 to 2020. He later became executive chairman before retiring in 2021. Iger returned to the company just a year later to serve a two-year term as CEO — taking his role back from Chapek — which has since been extended. He is now expected to leave the company in 2026.
The front-runners to replace Iger as CEO include Disney Entertainment co-chairs Dana Walden and Alan Bergman; Disney Experiences chairman Josh D’Amaro, and ESPN chairman Jimmy Pitaro.
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