Disney(DIS) ZACKS·2025-05-06 00:20Core Insights - The earnings season is currently very active, with decent overall performance, but recent tariff discussions have led to downward revisions in earnings expectations for Q2 and future periods [1] - Disney is set to report earnings this week, with a focus on its streaming performance in light of Netflix's recent strong results [2] Company Performance - Netflix has shown impressive results, with a 90% stock increase over the past year and reaffirmation of FY25 guidance, which has positively impacted investor sentiment [3] - Netflix has maintained subscriber growth, reporting only one quarter of negative growth in the last 12 quarters, and the introduction of ad-supported tiers has been successful despite initial consumer resistance [4] - A crackdown on password sharing has also proven beneficial for Netflix, allowing the company to capture revenue from previously unmonetized viewers [5] Disney Outlook - Analysts have a bearish outlook for Disney's upcoming quarter, with the Zacks Consensus EPS estimate at 23.1 billion [6][8] - Disney's subscriber growth is slower compared to Netflix, with 174 million total subscriptions and 120 million paid Disney+ Core subscribers, marking an increase of 4.4 million from the previous quarter [10] - The overall sentiment for Disney remains negative, with a Zacks Rank of 4 (Sell) indicating widespread negative revisions [11][13]