Joining us now to discuss all the details is the author of that note, Ben Swinburn, the head of US media research at Morgan Stanley. Good to see you. So, the two big questions for me are Disney Plus costs and theme park pricing.Have they got each of those things in the right balance and that's why you think it can keep running. >> Well, thanks for having me. I would say yes to both of those uh questions.On the cost side for Disney Plus, you know, Disney's really been rationalizing their spending across the ...

Core Viewpoint - The Walt Disney Company may need to prioritize quality over quantity in its Marvel Cinematic Universe releases, as recent box office performances indicate underwhelming results for its 2025 films compared to expectations [1][4]. Group 1: 2025 Marvel Film Performance - "Captain America: Brave New World" opened with a domestic box office of $100 million and an international total of $92.4 million, achieving a global total of $192.4 million [1]. - The second film, "Thunderbolts," opened with $74.3 million domestically and grossed $190.3 million domestically and $192.2 million internationally, totaling $382.4 million globally [2]. - "Fantastic Four: First Steps" opened with $117.6 million domestically but saw a significant drop of 66% in its second weekend, grossing $39.8 million, marking one of the largest second weekend drops for a Marvel film [3][4]. Group 2: Comparative Analysis with Previous Years - The three Marvel films released in 2025 have grossed a combined total of $589.2 million domestically and $1.16 billion globally, which is similar to the performance of three Marvel films released in 2023 [6]. - In contrast, the previous year's "Deadpool & Wolverine" grossed $636.7 million domestically and $1.34 billion worldwide, surpassing the combined totals of the 2023 Marvel films [7]. - Warner Bros. Discovery's "Superman" has outperformed the 2025 Marvel films, opening at $125 million domestically and grossing $316.2 million domestically and $551.2 million globally in four weeks [8][10]. Group 3: Future Outlook - Disney plans to reduce the frequency of Marvel film releases, with only two films scheduled for 2026 and one for 2027, including anticipated Avengers ensemble films [12]. - Disney's stock has seen a 1.9% increase to $118.85, with a year-to-date rise of 7.3% in 2025 [13].

Core Viewpoint - The Walt Disney Company is expected to report its third-quarter fiscal 2025 results on August 6, with revenue estimates at $23.67 billion, reflecting a modest growth of 2.23% year-over-year, and earnings per share expected to be $1.47, indicating a growth of 5.76% year-over-year [1][12]. Revenue and Earnings Estimates - The consensus estimate for revenues is $23.67 billion, suggesting a 2.23% increase from the previous year [1]. - The earnings per share consensus has decreased by a penny to $1.47, indicating a year-over-year growth of 5.76% [1]. - The estimated revenues for the Entertainment segment are projected at $10.84 billion, representing a 2.5% increase year-over-year [7]. - The Experiences segment is estimated to generate $8.4 billion in revenues, showing marginal growth of 0.3% year-over-year [11]. Recent Performance and Trends - In the last reported quarter, Disney achieved an earnings surprise of 22.88%, with an average surprise of 16.38% over the last four quarters [2]. - The Entertainment segment reported an operating income of $1.3 billion, a significant increase of 61% year-over-year [5]. - The direct-to-consumer segment's operating income surged to $336 million from $47 million a year earlier, with expectations for continued profitability growth [6][8]. - Disney+ gained 1.4 million subscribers, while Hulu added 1.3 million subscribers in the fiscal second quarter, contributing to positive momentum [8]. Strategic Developments - The Sports segment benefited from a 29% year-over-year growth in ESPN's domestic advertising revenues, with new initiatives expected to enhance performance [9]. - Disney announced its seventh theme park resort in Abu Dhabi, which is anticipated to significantly impact the Experiences segment and access a large global audience [10]. - The company is trading at a forward P/E of approximately 18.61x, which is below the industry average of 20.25x, indicating a potentially attractive valuation [15]. Investment Considerations - Disney presents a compelling buy opportunity ahead of the third-quarter earnings, supported by strong fundamentals and multiple growth catalysts [18]. - The integrated ecosystem of Disney+, Hulu, and ESPN creates sustainable competitive advantages, especially as rivals face streaming losses [18]. - The convergence of streaming profitability, international expansion, and robust operational momentum positions Disney favorably for future growth [19].

Market Overview - Recent market pullback due to new tariffs and a slowdown in job growth has shaken investor confidence, with July nonfarm payrolls rising by only 73,000, significantly below expectations [1] - June's job numbers were revised downward, indicating a weaker labor market than previously thought [1] - Renewed trade tensions have fueled expectations of a Federal Reserve rate cut and increased risk aversion, leading to sharp declines in major indices [1] Importance of Financial Health - Investors should not rely solely on stock price movements; understanding a company's fundamentals is crucial for informed decision-making in an unpredictable market [2] - Sales and earnings metrics can be misleading; the interest coverage ratio is a key indicator of a company's ability to meet financial obligations [3][4] Interest Coverage Ratio - The interest coverage ratio measures how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5] - A higher interest coverage ratio indicates a greater ability to meet financial commitments, while a ratio below 1 suggests potential default risks [6][7] - Companies with strong interest coverage ratios include The Walt Disney Company, BJ's Wholesale Club, Ralph Lauren, and McKesson Corporation, all of which demonstrate solid debt-servicing capabilities [9][11] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][10] - The selected companies have shown strong earnings surprises and are projected to grow sales and earnings in the coming year [9][11] Company Performance Highlights - **Walt Disney Company**: Zacks Rank 2, VGM Score B, with a trailing four-quarter earnings surprise of 16.4% and projected sales and EPS growth of 4% and 16.3% respectively [12] - **BJ's Wholesale Club**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 17.7%, with projected sales and EPS growth of 5.5% and 6.2% respectively [13] - **Ralph Lauren**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 9%, with projected sales and EPS growth of 3.8% and 11.8% respectively [14] - **McKesson Corporation**: Zacks Rank 2, VGM Score A, trailing four-quarter earnings surprise of 3.9%, with projected sales and EPS growth of 13.1% and 12.7% respectively [15]

All right, let's get to a mad dash. We have an opening bell less than a minute away. Disney.Yeah. Now, it always concerns me when not one but two analysts push a stock hard ahead of the quarter. Now, Disney does report uh on the six.Uh this morning, Morgan Stanley comes out with the return of the compounder, basically saying it's like the old days. It's going to be terrific. And then uh Evercord with a piece about come sail away.Close look at the Disney cruise line opportunity. It's way too early to think a ...

New performance numbers, a box office winning streak, and a potentially newsworthy fan event are happening this month. Shares of Walt Disney (DIS -2.06%) proved mortal last month, sliding 4% in July after hitting a new 52-week highs in each of the last three trading days in June. Can Disney get its groove back this summer? Disney has topped analyst projections every single time over the past year. The pixie dust on top is that three of those surprises have been double-digit percentage beats. The last two re ...

Group 1 - Disney is set to release its Q3 earnings report for fiscal year 2025, with expected revenue of $23.75 billion and adjusted EPS of $1.48, both showing growth compared to the previous year [1] - The company's experience segment, which includes theme parks, resorts, and cruises, is anticipated to maintain strong demand [1] - In Q2 of fiscal year 2025, Disney reported revenue of $23.6 billion, a 7% year-over-year increase, and adjusted EPS of $1.45, a 20% increase from the previous year [1] Group 2 - UBS analysts raised Disney's target price from $120 to $138, citing robust demand for theme parks and improving profitability in the streaming business ahead of ESPN's new service launch [2] - Jefferies analysts emphasized that the upcoming quarter is crucial for shaping Disney's market narrative for the next two years, maintaining a "buy" rating with a target price of $144 [2] - Analysts are optimistic about Disney's future prospects due to strong trends in theme parks, new cruise capacity, and a robust content pipeline, along with the potential upside from full ownership of Hulu [2]

Group 1 - Disney is set to release its Q3 earnings report for fiscal year 2025, with expected revenue of $23.75 billion and adjusted EPS of $1.48, both showing growth compared to the previous year [1] - The company's experience segment, which includes theme parks, resorts, and cruises, is anticipated to maintain strong demand [1] - In Q2 of fiscal year 2025, Disney reported revenue of $23.6 billion, a 7% year-over-year increase, and adjusted EPS of $1.45, reflecting a 20% increase from the previous year [1] Group 2 - UBS analysts raised Disney's target price from $120 to $138, citing robust demand for theme parks and improving profitability in the streaming business ahead of ESPN's new service launch [2] - Analysts from Jefferies emphasized that the upcoming quarter is crucial for shaping Disney's market narrative for the next two years, maintaining a "buy" rating with a target price of $144 [2] - The positive outlook is supported by new movie and streaming releases, as well as the launch of two new cruise ships by the end of the year [2]

The Walt Disney Co. is set to report its fiscal third-quarter results before the market opens on Wednesday, with analysts expecting rising revenue and profits with resilient demand for its experiences segment. https://t.co/6HcLg1AHEf ...

Group 1 - The article emphasizes the importance of sustained profitability, highlighting that strong margins, stable and expanding free cash flow, and high returns on invested capital are more reliable drivers of returns than valuation alone [1] - The author has a diverse educational background, including degrees in Economics, Classical Philology, and Philosophy & Theology, which aids in analyzing companies through both numerical and humanistic perspectives [1] - The investment philosophy focuses on long-term growth and dividend growth, seeking undervalued stocks and high-quality dividend growers that generate dependable cash flow for reinvestment [1] Group 2 - The author expresses a commitment to responsible stewardship of wealth, aiming to provide not just financial resources but also the freedom that comes with wise management of assets [1] - The goal of the investment strategy is to ensure that there are enough assets to allow for personal freedom in work and life, rather than to escape work altogether [1]