Disney (DIS) is slated to report first-quarter fiscal 2025 results on Feb. 5.The Zacks Consensus Estimate for revenues is pegged at $24.7 billion, suggesting modest growth of 4.87% from the year-ago quarter’s reported figure.The consensus mark for earnings has moved south by a penny to $1.44 per share over the past 30 days, indicating growth of 18.03% year over year.Image Source: Zacks Investment ResearchFind the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, Dis ...

Key TakeawaysDisney is scheduled to report first-quarter earnings before the bell Wednesday, with analysts expecting revenue and profit to rise from last year.Analysts are mostly bullish on the entertainment conglomerate's stock.The profitability of Disney's streaming and experiences business have been a focus of recent analysts' comments. The Walt Disney Co. (DIS) is set to report fiscal 2025 first-quarter results Wednesday morning, with analysts expecting rising revenue and net income as the profitability ...

The upcoming report from Walt Disney (DIS) is expected to reveal quarterly earnings of $1.45 per share, indicating an increase of 18.9% compared to the year-ago period. Analysts forecast revenues of $24.7 billion, representing an increase of 4.9% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company reveals its earnings, it is ...

Core Viewpoint - Walt Disney is transitioning its focus towards its direct-to-consumer (DTC) streaming segment, which is becoming increasingly important for its revenue generation after previously incurring significant losses [1][2]. DTC Segment Performance - The DTC segment has recently started generating positive operating income, marking a critical milestone for the company [2]. - Disney reported 157 million global monthly active ad-supported users across its DTC platforms, including Disney+, Hulu, and ESPN+, with 112 million users in the U.S. and Canada [3]. - The metric reflects users rather than accounts, indicating approximately 60 million ad-supported accounts, which is less than 31% of total DTC subscribers as of September 28, 2024 [4]. Subscriber Trends - CEO Bob Iger noted that 60% of new subscribers in the U.S. are opting for ad-supported plans, highlighting a shift in consumer preference [4]. - This trend aligns with Netflix's experience, which reported a 30% increase in ad-tier signups quarter over quarter and a doubling of ad revenue in 2024 [5]. Monetization Strategies - Disney is monetizing its DTC segment through subscription fees and advertising sales, with the latter expected to be a significant driver of financial performance [7]. - The basic ad-supported tier of Disney+ costs $9.99 per month, which is lower than the ad-free option, and pricing changes are aimed at encouraging more users to choose ad-supported plans [8]. Valuable Intellectual Property - Disney's extensive intellectual property portfolio includes blockbuster movies, classic franchises, and popular series, which drive viewer interest and engagement [9]. - The company also holds sports broadcasting rights, with plans to launch a standalone ESPN streaming service, further enhancing customer growth potential [9]. Competitive Advantage - Disney's proprietary ad tech stack allows for effective ad delivery to consumers, providing a competitive advantage in the streaming market [11]. - The success of Disney's streaming services, particularly in advertising, is a key reason for potential investment in the stock [11].

Core Viewpoint - Walt Disney's stock performance has shown a slight decline recently, but it has outperformed the Consumer Discretionary sector and the S&P 500 over the past month, indicating a mixed but generally positive outlook for the company ahead of its upcoming earnings report [1][2]. Financial Performance - The upcoming earnings report for Walt Disney is scheduled for February 5, 2025, with projected EPS of $1.45, reflecting an 18.85% increase year-over-year. Quarterly revenue is expected to be $24.7 billion, up 4.87% from the previous year [2]. - Full-year Zacks Consensus Estimates predict earnings of $5.41 per share and revenue of $94.94 billion, representing year-over-year increases of 8.85% and 3.91%, respectively [3]. Analyst Sentiment - Recent revisions to analyst forecasts for Walt Disney are crucial as they indicate short-term business trends. Positive estimate revisions are seen as a sign of optimism regarding the company's outlook [4]. - The Zacks Rank system, which assesses estimate changes, currently ranks Walt Disney at 3 (Hold), with no changes in the EPS estimate over the past month [6]. Valuation Metrics - Walt Disney is trading at a Forward P/E ratio of 20.94, which is below the industry average of 22.08, suggesting that the stock is undervalued compared to its peers [7]. - The company has a PEG ratio of 2.03, which is lower than the industry average of 2.49, indicating a more favorable valuation in terms of projected earnings growth [8]. Industry Context - The Media Conglomerates industry, to which Walt Disney belongs, ranks in the bottom 28% of all industries, according to the Zacks Industry Rank, which assesses the performance of industry groups [8][9].

Company Valuation and Performance - The Walt Disney Co (DIS) was previously considered to be up to 55% undervalued in October [1] - Since October, the company's shares have increased by approximately 20% [1] - There is still potential upside for the company's valuation [1] Analyst Background and Methodology - The analysis is conducted by an individual with over 15 years of market experience in stocks, FX, crypto, and commodities [1] - The analyst holds a master's degree in finance and combines microeconomic studies of company financials with a macroeconomic perspective [1] Analyst Position and Disclosure - The analyst holds a beneficial long position in DIS through stock ownership, options, or other derivatives [2] - The analysis represents the analyst's own opinions and is not influenced by compensation or business relationships with mentioned companies [2]

Group 1 - Disney's stock investors are seeking clarity on the rationale behind its streaming TV deal with Fubo [1] - The stock prices referenced were from the afternoon of January 23, 2025, indicating a specific timeframe for the analysis [1] - The video discussing this deal was published on January 25, 2025, suggesting a timely examination of the market reaction [1]

Core Viewpoint - Walt Disney is poised to outperform the market in 2025 after a strong performance in 2024, where shares rose 24%, aligning with the S&P 500 [1][4]. Group 1: Recent Performance and Growth - Disney's recent successes include the release of the three highest-grossing movies of 2024 and a profitable Disney+ streaming segment, which had previously incurred billions in losses [3]. - The company's market cap has surpassed $200 billion, reflecting a turnaround since Bob Iger's return as CEO, although revenue growth has been modest, remaining in the single digits for four of the last five fiscal years [4]. - In fiscal 2024, Disney exceeded Wall Street profit targets for all four quarters, with net income growing significantly faster than revenue, which increased by only 3% [5]. Group 2: Future Outlook and Strategies - Analysts project a modest 4% revenue growth for fiscal 2025, while Disney's guidance anticipates adjusted net income to rise in the high single digits [6]. - The company is focusing on long-term growth through expansion projects at domestic theme parks and scalability for Disney+ [7]. - Disney plans to add another cruise ship to its fleet and has made significant announcements regarding its premium cruise line, which is crucial for future growth [8]. Group 3: Upcoming Releases and Market Position - In 2025, Disney will release new installments in popular franchises, including Captain America and Avatar: Fire and Ash, which is expected to be a major box office success [9]. - Disney's stock is currently trading at a reasonable 20 times this year's adjusted earnings estimate, with expectations of a return to double-digit bottom-line growth in fiscal 2026 and 2027 [10]. - As valuations for many tech leaders are extended, Disney is emerging as a compelling flight-to-safety investment for 2025 [11].

Executive Compensation - Disney CEO Bob Iger's total pay package increased to $41 1 million in fiscal 2024, up 30% from $31 6 million in the previous year [1] - Hugh Johnston, Disney's CFO since December 2023, made $24 5 million last year [2] - Horacio Guttierez, Disney's Senior EVP and Chief Legal and Compliance Officer, earned $15 8 million, up from $11 6 million in fiscal 2023 [2] Succession Planning - Disney is preparing for CEO succession ahead of Bob Iger's contract expiration on December 31, 2026 [1] - The successor will be selected by early 2026 from a pool of four internal candidates and outsiders [1] Shareholder Meeting - Disney's annual shareholder meeting will be held virtually on March 20 [3] - Last year's meeting saw challenges from activist shareholders, including Nelson Peltz, who raised concerns about film studio dysfunction and excess costs [3] - This year's meeting is expected to be less contentious, with the company urging "no" votes on three shareholder proposals related to climate-related investments, participation in the Human Rights Campaign's Corporate Equality Index, and ad spending on platforms with disfavored political and religious viewpoints [4]

Group 1 - Disney stock experienced a significant recovery in the latter half of 2024, rising from a low of $85.60 to $111.35, resulting in a 24.5% gain, which underperformed the S&P 500's 25% return [1] - The primary catalyst for this rebound was Disney's Q4 and full-year 2024 earnings report, which exceeded market expectations for both earnings and revenue [2] - As of January 23, 2025, Disney stock price decreased to $108.86, reflecting a 2.26% decline since the start of the year [2] Group 2 - Wall Street analysts are becoming increasingly optimistic about Disney, with Citigroup's Jason Bazinet setting a price target of $125, indicating a 15% upside [3][4] - Citi anticipates an 8% growth in EPS for 2025, followed by 11% and 13% growth in 2026 and 2027, respectively, based on strategic mergers and product launches [5] - Citi's EPS estimates for 2025 and 2026 are below market expectations, with a bear case scenario suggesting a downside to $96, while a bull case could see the stock rise to $134 [6][7] Group 3 - Bazinet resumed coverage on Disney with a conservative price target of $125 and a 'Buy' rating, advising investors to monitor the upcoming earnings call on February 5 [8]