This quarter turned out to be important for Disney as Disney+ streaming service has successfully completed one full quarter. Investors expect a growth in the number of subscribers signing up for the streaming service. Also, traders believe that the service could give stiff competition to Netflix (NASDAQ: NFLX) in the streaming market.
In addition, ESPN is likely to decline due to higher programming, production, and marketing costs related to the NFL, college sports and MLB. But the increase in contractual rates and ACC Network launch could lessen the decline.
For the quarter, Disneyland Resort is likely to show growth as average ticket prices, food, beverage, and merchandise spending could possibly increase guest spending. The company is predicted to incur additional costs related to the consolidation of Hulu, costs related to Disney+ launch, and continued investment in ESPN+.
Analysts expect the company’s earnings to drop by 20.70% to $1.46 per share while revenue will jump by 36% to $20.78 billion for the first quarter. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “strong-buy” or “buy” rating with an average price target of $157.76.
For the fourth quarter, Walt Disney posted a 66% dip in earnings due to higher costs and expenses. However, the business segments contributed positively to the top line, which has risen by 34%. Disney experienced a decrease at ESPN due to increases in NFL, college sports and MLB programming, production and marketing costs.
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