Disney Is Set to Report Earnings Thursday. Here's What You Need to Know

Walt Disney Co. is poised to release its fiscal fourth-quarter earnings on Thursday, with analysts prioritizing growth in its direct-to-consumer streaming segment, theme parks, and sports, while linear networks are expected to decline. The company is projected to report EPS of $1.04 on $22.75 billion in revenue, with Citi analysts recently raising their price target to $145. Despite the stock's year-to-date underperformance against the S&P 500, Wall Street remains largely bullish, forecasting a 25% upside from current levels.

Analysis

Walt Disney Co. (DIS) is set to report fiscal Q4 earnings, with analysts keenly focused on growth in its direct-to-consumer (DTC) streaming segment, theme parks, and sports. The company is projected to achieve earnings per share of $1.04 on $22.75 billion in revenue, representing a less than 1% year-over-year increase. Investors will be assessing the impact of October's streaming price hike and potential consumer responses.

Despite DIS stock's year-to-date underperformance, gaining only 5% against the S&P 500's 17% rise, Wall Street maintains a strongly bullish outlook. All six analysts tracked by Visible Alpha rate DIS a "buy," with a mean target price of $146, suggesting a 25% upside from Wednesday's close. Citi recently increased its price target to $145 from $140, reflecting this positive sentiment.

Key areas of scrutiny include updates on the YouTube TV fee dispute, which has left Disney channels dark for subscribers, and the anticipated decline in revenue from linear networks. A stronger-than-expected earnings report, particularly in the DTC and experiences segments, could significantly boost investor enthusiasm and validate the current bullish analyst consensus.

Key Decisions for Investors

• Investors should closely monitor Disney's Q4 earnings report, particularly growth metrics for the DTC streaming and experiences segments, as these are critical for validating the bullish analyst consensus.
• Pay attention to management commentary regarding the impact of recent streaming price increases and any updates on the YouTube TV distribution dispute, which could influence subscriber numbers and future revenue.
• Consider the 25% implied upside from the mean analyst target of $146 against the stock's year-to-date underperformance, evaluating if a strong report could trigger a significant re-rating.