Disney Anticipates Robust Earnings Amid Streaming Expansion and Theatrical Success

Disney (DIS) is poised to unveil its fiscal first-quarter earnings before the market opens on Wednesday, February 8th. The entertainment powerhouse aims to extend its recent streaming momentum and capitalize on its box office triumphs.

Financial Projections

Consensus estimates compiled by Bloomberg predict the following financial performance:

* Total Revenue: $24.57 billion (vs. $22.08 billion in Q1 2024)
* Adjusted Earnings Per Share (EPS): $1.42 (vs. $1.21 in Q1 2024)
* Entertainment Revenue: $11 billion (vs. $9.98 billion in Q1 2024)
* Sports Revenue: $4.70 billion (vs. $4.84 billion in Q1 2024)
* Experiences Revenue: $9.30 billion (vs. $9.13 billion in Q1 2024)
* Disney+ Subscriber Net Additions: Loss of 1.41 million (vs. loss of 600,000 in Q1 2024)

Streaming Profitability Focus

Disney's direct-to-consumer (DTC) streaming business, encompassing Disney+, Hulu, and ESPN+, is expected to generate profits of $875 million in fiscal 2025. This aligns with the company's commitment to achieving streaming profitability amidst the shift away from traditional pay-TV.

Price Hikes and Industry Consolidation

To mitigate linear television declines, Disney has announced price increases for its subscription plans. Additionally, the merger of its Hulu+ Live TV business with Fubo TV showcases media companies' efforts to consolidate and boost margins.

Streaming Focus Amidst Industry Changes

Disney is actively expanding its streaming presence. The recent announcement of Venu Sports' demise highlights regulatory and antitrust concerns in the streaming market. Meanwhile, linear network revenue is anticipated to face year-over-year declines, which CFO Hugh Johnston views as a "natural hedge" against linear network struggles.

CEO Succession and Industry Outlook

As Disney navigates the evolving entertainment industry, it continues to search for a successor to CEO Bob Iger, with an announcement expected in early 2026. Alexandra Canal, Senior Reporter at Yahoo Finance, will provide continuous updates and insights into the company's financial results.