Analysts Optimistic Ahead of Disney Earnings Report

BURBANK, Calif. — The Walt Disney Company is set to announce its fiscal second-quarter results on Wednesday, with analysts expressing optimism regarding the media giant’s stock performance. Five out of seven analysts from Visible Alpha rate Disney’s stock as a ‘buy,’ while the remaining two suggest a ‘hold.’ Their average price target stands at $120, representing a nearly 30% premium over Friday’s closing price, demonstrating confidence that shares will recover from a 19% decline since late February.

Analysts project Disney will report second-quarter revenue of $23.17 billion, marking a 5% increase from the previous year. However, adjusted earnings per share are anticipated to dip by a penny, reaching $1.20. UBS analysts maintained a ‘buy’ rating in their recent report but revised their price target down to $105 from $130, citing expectations of strong demand in parks and initial success with a new cruise ship. However, they noted potential ‘recession risk’ that may impact advertising revenue and park attendance later in the fiscal year.

In the last quarter, Disney exceeded revenue and profit expectations but reported a slight decline in subscriptions for Disney+, which fell to 124.6 million. The company indicated it anticipates a further modest decline, with consensus estimates predicting 123.7 million subscribers by the end of this quarter.

The anticipation surrounding Disney’s results reflects broader interest in the media industry amid changing consumer preferences and economic conditions. As Disney navigates these challenges, industry experts will closely monitor the upcoming earnings call for insights into the company’s direction.