Disney is scheduled to release fiscal third-quarter earnings before the bell on Wednesday, followed by an investor call at 8:30 a.m. ET. According to LSEG, analysts expect the company to post earnings of $1.86 per share on revenue of $25.4 billion.
The report arrives less than five months after Josh D’Amaro replaced Bob Iger as chief executive, making this one of the first major earnings tests of his leadership. Investors will be looking for more detail on how he intends to drive growth, especially after he outlined a strategy last quarter centered on investing in intellectual property and using technology to enhance storytelling, with a particular focus on theme parks and streaming.
Cost management is also likely to remain in view. Disney has gone through layoffs across the company, including a reported round in July that affected divisions such as ESPN. Wall Street will want to know more about those reductions and any other steps the company is taking to control expenses as it navigates a changing operating environment.
Theme parks are still a major source of revenue and profit for Disney, but broader consumer pressure and higher travel costs have weighed on parts of the sector. Last month, Comcast’s NBCUniversal said attendance at its Orlando parks had softened because of weaker consumer sentiment and increased travel expenses. Disney previously said domestic park demand remained healthy and guest spending rose last quarter despite those headwinds.
Streaming will also be a key focus. Investors are expected to press for updates on subscriber and advertising trends at Disney+, along with ESPN’s direct-to-consumer service, which launched nearly a year ago. Those numbers will help show whether Disney’s media and entertainment businesses are maintaining momentum alongside its parks division.
Source: cnbc.com
