Key Takeaways Disney (DIS) is making a bold play in the streaming revolution with the highly anticipated launch of ESPN's direct-to-consumer (DTC) service. The move follows Disney's landmark sports rights deal, securing premium content like NFL Network, RedZone and future WWE events — cementing its dominance in live sports coverage. As streaming viewership outpaces traditional cable for the first time in 2025, the company sees sports as its next major growth engine, delivering live action directly to fans w ...

Group 1: Earnings Performance - Madison Square Garden Entertainment (MSGE) reported a quarterly loss of $0.5 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.47, and a significant decline from earnings of $1.41 per share a year ago [1] - The company posted revenues of $154.14 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.27% and down from $186.07 million year-over-year [2] - Over the last four quarters, MSGE has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - MSGE shares have increased approximately 13% since the beginning of the year, outperforming the S&P 500's gain of 9.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at -$0.38 for the coming quarter and $1.81 for the current fiscal year on revenues of $146 million and $997.06 million, respectively [7] - The Zacks Rank for MSGE is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Media Conglomerates industry, to which MSGE belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Insights - Disney has presented a strong investment thesis for 2025, highlighted by its Q3 fiscal 2025 results, showcasing synergy between theme parks and streaming operations [1] - The company reported adjusted earnings per share of $1.61, exceeding consensus estimates by 10.3%, and raised its full-year guidance to $5.85 per share, an 18% increase from fiscal 2024 [1][11] Theme Parks Performance - Disney's Experiences segment generated over $9 billion in revenue, reflecting an 8% year-over-year increase, with Walt Disney World achieving record revenues due to strong demand and longer guest stays [2] - Domestic Parks operating income surged 22% to $1.65 billion, driven by higher per-capita guest spending and expanded cruise operations, indicating strong consumer demand for premium experiences [3] - The company anticipates approximately 8% growth in segment operating income for fiscal 2025, with current quarter bookings tracking about 6% higher [4] Streaming Business Developments - Disney's direct-to-consumer streaming segment achieved $346 million in operating income for Q3, a significant turnaround from previous losses, marking a critical profitability milestone [6] - Disney+ core subscribers reached 128 million, with an addition of 1.8 million in the quarter, while combined subscriptions for Disney+ and Hulu totaled 183 million [7] - The company raised its operating income expectation for streaming to $1.3 billion for fiscal 2025, indicating sustainable profitability growth [7] Content Strategy and Integration - Disney's competitive advantage lies in its ability to create valuable content across multiple segments, exemplified by the success of the live-action Lilo & Stitch film, which grossed over $1 billion and generated significant streaming hours on Disney+ [8] - Plans to fully integrate Hulu into Disney+ aim to enhance customer value and reduce operational complexity, creating a comprehensive entertainment package [9] Growth Catalysts - The launch of ESPN's direct-to-consumer service, ESPN Unlimited, is expected to contribute to overall earnings growth, supported by an expanded NFL partnership [10] - The Zacks Consensus Estimate for fiscal 2025 revenues is $94.93 billion, indicating a 3.91% year-over-year growth, with earnings projected to increase by 17.3% to $5.83 per share [5] Valuation and Market Position - Disney trades at a forward P/E of approximately 18x, below the industry average of 20.11x, presenting compelling value compared to competitors [15] - Despite generating approximately $24.15 billion in direct-to-consumer revenues over the last 12 months, Disney's market capitalization remains lower than that of Netflix, which generated $41 billion [15] Investment Outlook - Disney's Q3 results reflect successful navigation of industry transformation, with record theme park performance, streaming profitability, and strategic content integration creating a compelling investment opportunity for 2025 [19] - The convergence of growth drivers, including global theme park expansion, profitable streaming operations, and enhanced sports content offerings, positions Disney favorably for sustained growth [20]

Core Insights - Liberty Media Corporation - Liberty Formula One Series C reported quarterly earnings of $1.52 per share, significantly exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.1 per share a year ago [1] - The earnings surprise for this quarter was +87.65%, following a previous quarter where the company also exceeded expectations with a surprise of +127.78% [2] - The company posted revenues of $1.2 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.17%, but showing growth from $853 million in the same quarter last year [3] Earnings Performance - Over the last four quarters, Liberty Media has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $829.77 million, and for the current fiscal year, it is $1.63 on revenues of $3.78 billion [8] Market Position - Liberty Media's shares have increased by approximately 7.6% since the beginning of the year, compared to a 7.9% gain in the S&P 500 [4] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Media Conglomerates industry, to which Liberty Media belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Core Insights - Atlanta Braves Holdings, Inc. reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and matching the earnings from the previous year [1] - The company achieved revenues of $312.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.86% and showing an increase from $282.88 million year-over-year [2] - The stock has gained approximately 16.1% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] Earnings Performance - Over the last four quarters, Atlanta Braves Holdings has surpassed consensus EPS estimates three times [2] - The company had an earnings surprise of +35.29% for the recent quarter and a surprise of +29.79% in the previous quarter [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $301 million, while the estimate for the current fiscal year is -$0.54 on revenues of $687 million [7] - The estimate revisions trend for the company was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Media Conglomerates industry, to which Atlanta Braves Holdings belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [5]

Walt Disney (DIS) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +10.27%. A quarter ago, it was expected that this entertainment company would post earnings of $1.18 per share when it actually produced earnings of $1.45, delivering a surprise of +22.88%.Over the last four quarters, t ...

Reservoir Media, Inc. (RSVR) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.04, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Reservoir Media, which belongs to the ...

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].

Earnings Performance - Paramount Global reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.54 per share a year ago, indicating an earnings surprise of +4.55% [1] - The company posted revenues of $6.85 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.47%, and showing a slight increase from $6.81 billion year-over-year [2] Stock Performance and Outlook - Since the beginning of the year, Paramount Global shares have increased by approximately 4.4%, while the S&P 500 has gained 8.2% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $6.85 billion, and for the current fiscal year, it is $1.25 on revenues of $28.64 billion [7] Industry Context - The Media Conglomerates industry, to which Paramount Global belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Group 1: Earnings Performance - Paramount Global-B reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, but down from $0.54 per share a year ago, representing an earnings surprise of +12.20% [1] - The company posted revenues of $6.85 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.22%, compared to revenues of $6.81 billion a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - Paramount Global-B shares have increased approximately 27.2% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $6.68 billion, and for the current fiscal year, it is $1.28 on revenues of $28.29 billion [7] - The estimate revisions trend for Paramount Global-B was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Media Conglomerates industry, to which Paramount Global-B belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]