Writers walk the picket line on the second day of the tv and movie writers’ strike outside Disney Studios in Burbank, California on May 3, 2023.
Robyn Beck | AFP | Getty Images
A writers strike, a feud in Florida and ongoing company-wide layoffs — there may be quite a bit greater than quarterly earnings for CEO Bob Iger and the Walt Disney Company to deal with on Wednesday.
Because the pandemic era fades, Disney has staged a rapid financial recovery inside most of its divisions, from theme parks to theatrical entertainment. Meanwhile, its streaming business has slowed and it continues to face headwinds in its traditional media business as consumers cut cable and promoting revenue plummets.
Investors are keen to see if the newly returned Iger can overcome these concerns while paving the best way for the long run with a recent succession plan.
The corporate reports is fiscal second quarter earnings after the bell.
Listed below are what analysts expect:
- Earnings per share: 93 cents per share expected, in line with a Refinitiv survey of analysts
- Revenue: $21.79 billion expected, in line with Refinitiv
- Disney+ total subscriptions: 163.17 million expected, in line with StreetAccount
Beyond day-to-day operations at the corporate, shareholders and industry analysts expect Iger to deal with a number ongoing challenges.
On Monday, Disney expanded its federal lawsuit against Florida Gov. Ron DeSantis, accusing the Republican leader of doubling down on his “retribution campaign” against the corporate by signing laws to void Disney’s development deals in Orlando.
Moreover, the corporate is already seeing rippling effects from the continued writers strike, including the production shutdowns of Marvel Studios’ “Blade,” which was set to start filming in Atlanta next month, in addition to the Disney+ Star Wars series “Andor.”
There may be also the third wave of expected layoffs inside the company, that industry experts expect to see announced soon.