Disney (DIS) Earnings Preview: Streaming Momentum Meets Box Office Success
Disney anticipates a strong first fiscal quarter performance driven by its streaming services and recent box office hits.
Key Financials:
* Total Revenue: $24.57 billion (estimated) vs. $22.08 billion (Q1 2024)
* Adjusted Earnings Per Share: $1.42 (estimated) vs. $1.21 (Q1 2024)
* Entertainment Revenue: $11 billion (estimated) vs. $9.98 billion (Q1 2024)
* Sports Revenue: $4.70 billion (estimated) vs. $4.84 billion (Q1 2024)
* Experiences Revenue: $9.30 billion (estimated) vs. $9.13 billion (Q1 2024)
Streaming:
* Disney's direct-to-consumer (DTC) streaming business, which includes Disney+, Hulu, and ESPN+, is projected to turn a profit of $875 million in fiscal 2025.
* The company recently implemented price increases for its various subscription plans, boosting margins on DTC offerings.
Mergers and Acquisitions:
* Disney announced the merger of its Hulu+ Live TV business with Fubo TV, aiming to increase its majority ownership in the combined entity.
* The Venu Sports sports streaming service, a joint venture between Disney, Warner Bros. Discovery, and Fox, has been abandoned due to regulatory concerns.
Parks and Resorts:
* Despite hurricanes impacting the quarter, Disney expects operating income at its parks to recover throughout the year, with growth between 6% and 8% anticipated for fiscal 2025.
Linear Networks:
* Linear network revenue is projected to decline year over year, with gains in streaming acting as a buffer against the trend.
Succession Planning:
* Disney's search for a successor to current CEO Bob Iger, who will step down in early 2026, is ongoing.