Disney’s Stock Performance Ahead of Earnings Report
Walt Disney’s stock has seen an increase of about 8% since the start of the year. The company is set to release its fiscal third-quarter results on Wednesday morning, and analysts are optimistic about the media giant’s performance.
Expectations are high for a year-on-year rise in revenue and profits. Disney has indicated that it anticipates adding more subscribers to its Disney+ service in this quarter, following growth last quarter. Additionally, there’s a positive sentiment regarding demand for Disney’s theme parks and cruises, with new film releases and cruise offerings potentially boosting the stock later this year.
When it comes to market projections, six out of seven analysts tracked by Visible Alpha have labeled Disney as a “buy,” with an average price target of nearly $136. This represents an anticipated increase of around 17% since the previous week, marking the highest stock price for Disney since April 2022.
The financial expectations for Disney include projected revenues of $23.75 billion and adjusted earnings per share of $1.48. This is in contrast to the same period last year.
In the previous quarter, Disney surpassed expectations, notably with a surprise increase in Disney+ subscribers, and has announced plans for a new theme park in Abu Dhabi. The company has also adjusted its earnings per share forecast to $5.75, reflecting a 16% increase from fiscal year 2024 after initially predicting a smaller rise.
Recently, UBS analysts raised their price target for Disney from $120 to $138. They believe this quarter will show continued demand for Disney’s parks and expect improved profitability in streaming services ahead of the launch of a new ESPN streaming service.
According to a UBS analyst, there’s a generally positive outlook for Disney, especially considering new attractions and content. Meanwhile, analysts from Jeffries emphasized that this quarter is crucial for Disney, as it could set the narrative for the next couple of years. They maintain confidence after recent upgrades and highlight the promising future with major upcoming releases.
