Disney Experience Chairman Josh D’Amaro speaks at the grand opening ceremony for the Zootopia-themed land at Shanghai Disney Resort on December 19, 2023 in Shanghai, China.
Video Visual China Group | Getty Images
disney is expected to report second-quarter results before the bell on Wednesday. This will be Josh D’Amaro’s first earnings release since the former Park executive took over as CEO in March.
Under a new CEO, who replaced Bob Iger after two stints totaling nearly 20 years at the helm, Disney has already cut jobs and is facing increased political pressure over late-night TV host Jimmy Kimmel.
“This earnings release is the first real gut check for Disney under Mr. D’Amaro’s leadership and will test how his theme park roots translate to the rest of the business, or not,” said Mike Proulx, director of research at Forrester. “Streaming is still the main event, but the market is consolidating. The potential combination of Paramount+ and HBO Max would reset the competitive calculus for Disney+.”
Streaming and TV outcomes are occupying much of the overall focus of media investors as the industry faces significant disruption and consolidation.
According to LSEG, Disney’s fiscal second quarter results are expected to be:
Earnings per share: $1.49 Expected sales: $24.78 billion expected
Last quarter, Disney stopped reporting details on parts of its entertainment division, which consists of traditional television, streaming and theatrical releases, including a breakdown of each division’s revenue and operating income. The company also stopped reporting quarterly streaming subscriber numbers.
Consumers’ shift away from pay-TV bundles to streaming has weighed on media companies for years, with both distribution and advertising profits continuing to decline. Still, traditional TV remains a cash cow, and investors are focused on when and how streaming can pick up the slack.
Also of particular interest on Wednesday will be an update on the status of Disney’s theme parks, which are part of the Experiences division and the company’s revenue driver.
In February, Disney released a second-quarter outlook that called for “moderate” growth in operating profit at its Experiences division, due to headwinds from international visitors to its domestic parks. The forecast was released before the United States and Israel launched attacks on Iran about two months ago, causing oil prices to soar.
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