Disney is set to report its fiscal first-quarter earnings before the bell on Wednesday. The company aims to build on its recent streaming momentum and theatrical hits at the box office.
The parks business may face uncertainty due to Hurricane-related losses, estimated at around $130 million, in the quarter. However, Disney expects operating income at the parks to improve beyond the first quarter, with growth predicted between 6% and 8% for full-year 2025.
Wall Street analysts expect Disney’s revenue to increase, with total revenue projected at $24.57 billion versus $22.08 billion in Q1 2024. Entertainment revenue is expected to rise, while sports revenue is expected to decline year over year.
Streaming profitability will remain a focus point, with Disney anticipating profits of approximately $875 million from its direct-to-consumer streaming business. The company recently reported a profit of $321 million for the three months ending Sept. 28. Achieving consistent profits in streaming is crucial for media giants like Disney as consumers shift to DTC services.
Disney’s streaming ambitions are driving growth, with recent price hikes and a merger between Hulu+ Live TV and Fubo TV expected to boost margins. The company is also exploring new content offerings and partnerships to enhance its streaming services.
As investors await the earnings call, they may hear about the demise of Venu Sports, a sports streaming service that was supposed to launch but was abandoned due to regulatory concerns. Meanwhile, linear network revenue is expected to decline year over year.
Disney’s search for a successor to current CEO Bob Iger will continue in early 2026, as the company navigates a changing industry. The company’s focus on streaming growth and innovation will be crucial in its future success.
Source: https://finance.yahoo.com/news/disney-earnings-preview-parks-likely-to-struggle-amid-hurricanes-as-investors-eye-streaming-momentum-204228384.html