Bob Iger poses with Mickey Mouse attends Mickey’s ninetieth Spectacular at The Shrine Auditorium on October 6, 2018 in Los Angeles.
Valerie Macon | AFP | Getty Images
LOS ANGELES – While shareholders will still be keyed in to see what number of subscribers Disney’s suite of streaming services added throughout the fiscal first-quarter report, the main focus of Wednesday’s earnings can be the return of CEO Bob Iger.
His reinstatement coincides with a contentious proxy battle with activist investor Nelson Peltz and follows a rough 12 months for the corporate’s stock, as soaring streaming costs and a slim slate of theatrical releases ate into profits.
That is Iger’s first earnings call since early 2020, and his words will set the tone for the long run of the media company. Investors are looking forward to details about his plans to transform the corporate’s structure.
Since his return, Disney’s stock has outperformed almost every member of the Dow Industrials. Shares of the corporate have risen around 20%, matching Dow Inc., and slightly below Boeing. Moreover, Disney’s gain is about five times that S&P 500’s 4% rise throughout the same period.
Here’s what analysts expect:
- Earnings per share:Â 78 cents expected, in line with a Refinitiv survey of analysts
- Revenue:Â $23.37 billion expected, in line with Refinitiv
- Disney+ total subscriptions: 161.1 million expected, in line with StreetAccount
Last quarter, with Bob Chapek still on the helm, Disney sought to temper investor expectations for the brand new fiscal 12 months, forecasting revenue growth of lower than 10%. As a part of that warning, the corporate noted that its Disney+ platform may even see a tapering of growth going forward.
In November, the corporate reported $1.5 billion in operating losses at its direct-to-consumer unit, which incorporates its streaming services. This quarter, Wall Street is predicting a rather smaller lack of $1.2 billion.
As for subscriber growth, analysts predict the overall Disney+ user pool can be 161.1 million, a lack of around 3 million in comparison with the previous quarter. The expectation is that a recent price hike prompted some consumers to drop the service.
Revenue and operating income at Disney’s theme parks may very well be up year-over-year considering the vacation season typically drives significant foot traffic to its domestic and international amusement locations. Moreover, the corporate released the blockbuster hit “Avatar: The Way of Water” in theaters in December, likely boosting its theatrical revenues year-over-year.
