Disney (DIS) is set to report its fiscal first quarter earnings before the bell on Wednesday as the company aims to extend recent streaming momentum and build on its latest string of theatrical hits at the box office.
The parks business will likely face some uncertainty after Disney estimated in November that Hurricanes Helene and Milton would register a hit of about $130 million in the quarter, while the Disney cruise line pre-launches will tack on an additional $90 million.
Still, the company said operating income at the parks will improve beyond the first quarter, estimating growth between 6% and 8% for full-year 2025.
Here’s how Wall Street expects Disney to perform, according to consensus estimates compiled by Bloomberg:
Total revenue: $24.57 billion versus $22.08 billion in Q1 2024
Adj. earnings per share: $1.42 versus $1.21 in Q1 2024
Entertainment revenue: $11 billion versus $9.98 billion in Q1 2024
Sports revenue: $4.70 billion versus $4.84 billion in Q1 2024
Experiences revenue: $9.30 billion versus $9.13 billion in Q1 2024
Disney+ subscriber net additions: Loss of 1.41 million versus loss of 600,000 in Q1 2024
Streaming profitability should once again be a focus point after Disney said it expects its direct-to-consumer (DTC) streaming business — which includes Disney+, Hulu, and ESPN+ — to post profits of approximately $875 million in fiscal 2025.
In its latest results, the company reported a profit of $321 million for the three months ending Sept. 28.
Achieving consistent profits in streaming is critical for Disney and other media giants as more consumers shift to DTC services from traditional pay-TV packages.
In mid-October, the company hiked the price of its various subscription plans, highlighting a trend that has gained traction over the past year. With such moves, media companies are attempting to boost margins on DTC offerings in the face of rising linear television declines.
Amid its streaming ambitions, Disney recently announced the merger of its Hulu+ Live TV business with internet sports bundler Fubo TV. The combined entity will be majority-owned by Disney, with the deal expected to close in the next 12 to 18 months.
On the earnings call, investors may hear about the demise of Venu Sports, a sports streaming service that was supposed to launch from Disney’s ESPN, Warner Bros. Discovery (WBD), and Fox (FOXA). It was ultimately abandoned due to increased regulatory and antitrust concerns.
Meanwhile, linear network revenue should once again decline year over year. Disney CFO Hugh Johnston previously said gains in streaming serve as a «natural hedge» against struggling linear networks.
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