Welcome to Extreme Investor Network, where we provide unique insights and valuable information on all things investing. Today, we are diving into the world of Walt Disney and its upcoming earnings report.
Walt Disney is set to showcase its top-tier media dominance when it releases its results before the bell on Tuesday. Despite facing challenges, such as a heated proxy battle with activist investor Nelson Peltz and Trian Partners, Disney’s shares have seen a 28% increase this year, with a 4% jump in May alone.
Analysts are expecting Disney to post earnings of $1.10 per share and revenues of approximately $22.11 billion for its fiscal second quarter. Bank of America analyst Jessica Reif Ehrlich has high hopes for Disney’s performance, anticipating a continuation of the strong underlying momentum reported in the first quarter.
Some Wall Street firms are also bullish on Disney, with JPMorgan analyst David Karnovsky raising his price target to $140, Wells Fargo’s Steven Cahall upping his target to $141, and Deutsche Bank’s Bryan Kraft hiking his target to $130. These analysts see potential for further growth in Disney’s stock price, with a focus on its direct-to-consumer business.
The direct-to-consumer segment, which includes Disney+ and the company’s streaming portfolio, is a key area of interest for investors. Wall Street is closely watching for signs of profitability or at least a break-even point for this business unit. With estimates of 229.35 million subscribers across the segment and nearly 155 million Disney+ subscribers, Disney is working on strategies to increase its subscriber base and crack down on issues like password sharing.
In addition, Disney is on track to achieve over $7.5 billion in cost savings, with analysts like Ehrlich confident that the direct-to-consumer business will reach profitability by the fourth quarter. As a result, she has raised her price target to $145, indicating nearly 28% upside potential from current levels.
At Extreme Investor Network, we believe that Disney’s unique content, improving streaming financials, and strong parks operation make it stand out in the media landscape. Stay tuned for Disney’s earnings report to see how this entertainment giant continues to navigate the ever-changing market dynamics and deliver value to its investors. Don’t miss out on our exclusive insights and analysis on investing trends by joining our network today.