The Walt Disney Company (DIS) is scheduled to release its third-quarter fiscal 2024 data on August 7.
With revenues estimated at $22.86 billion, the analysts project a 2.4% increase in revenue over the reported amount for the same quarter last year.
Disney Earnings Projection
Over the last 30 days, the consensus earnings figure has increased by a penny to $1.20 per share, representing growth of 16.5% each year. Earlier, Disney surprised investors with 8.04% earnings during the most recent published quarter.
Disney is in a fortunate position as the media environment changes from traditional linear media to streaming. Disney+ and Hulu are two strong U.S. streaming services, and ESPN+ rounds out the trio, so the media behemoth is well-positioned to handle this move with ease.
Disney's strategy of packaging various streaming services into an alluring package is one of its main competitive advantages. This strategy is anticipated to decrease customer attrition and increase average earnings per user in the to-be-reported period.
Disney+ Subscription Projection
Disney+ core subscriber growth, however, is forecast to stall in the third quarter of the fiscal year and then pick up steam in the fourth. The corporation is nonetheless upbeat and expects its integrated streaming activities to turn a profit by the end of the 2024 fiscal year.
It is anticipated that Media and Entertainment Distribution earnings in the to-be-reported period were adversely affected by DIS's predicted ongoing fall in Linear TV revenues.
The $9.88 billion estimate for entertainment revenues, which takes into account content sales/licensing, linear networks, direct-to-consumer sales, and other earnings, represents a 2.4% annual decline.
Intellectual Property (IP): Disney's Core Strength
The real power of DIS is found in its unmatched intellectual property (IP) portfolio. The corporation possesses the strongest portfolio of intellectual property (IP) in the media industry, ranging from the renowned Marvel and Star Wars brands to the adored Disney princesses, Mickey Mouse, and Pixar's timeless favorites. This abundance of intellectual property is a valuable asset since it allows viewers to engage with the information right away, lowering the risk involved in content investments.
In addition to supporting the company's studio operations, its vast intellectual property (IP) portfolio also serves as the foundation for its whole business ecosystem, which includes streaming, linear networks, and the lucrative Parks, Experiences & Consumer Products division.
Investors should keep a tight eye on important measures including park attendance, per-capita spending, and any announcements about expansion plans, especially in overseas markets, as we analyze the quarter under review. The way this part performs could lay a solid basis for Disney's future growth trajectory.
Disney Analysts Projection For 2024
Now that parks are open for business, 2024 is expected to see a spike in visitors due to global demand and the addition of new attractions. The company's theme park business is anticipated to have increased in the third quarter of its fiscal year due to new attractions like Shanghai Disney's Zootopia theme park and Hong Kong Disneyland's Frozen theme park, as well as Walt Disney Park in Paris.
The business expects its Experiences sector to have significant growth in operating profits. Our model predicts $8.9 billion in sales for the Experiences segment—which was formerly known as Disney Parks, Experiences, and Products—which is an 8.6% annual growth.
Disney's distinctive blend of cherished franchises and state-of-the-art distribution channels prepares it for long-term success as viewers adopt streaming platforms.
Disney is selling at a premium, indicating a stretched valuation, with a forward 12-month P/E of 16.58X compared to the industry average of 16.46X for the industry average. In contrast to cash and its equivalents and the current tradable investment assets balance of $6.635 billion, the company's debt account of $39.51 billion is unfavorable.
DIS Stock Forecast Technical Analysis
In the daily chart of DIS stock price, an ongoing bearish pressure is active with no sign of a bullish recovery. However, a minor bullish reversal is visible from the 88.61 static level from where a valid recovery is needed before forming a reversal.
The volume structure shows a positive sign for bulls where the current high volume level since November 2023 is at 91.26 level, which is just below the current Disney stock price.
Based on this outlook, a valid bullish reversal above the 20-day EMA with a daily close could be a potential bullish signal, aiming for the 106.00 area.
On the other hand, a failure to hold the upward pressure above the 94.90 high could be an alarming sign for bulls. A bearish daily close below the 88.61 static support level could be a potential bearish signal, aiming for the 79.29 level.
