The “Partners” statue of Walt Disney and Mickey Mouse, at Cinderella Castle at the Magic Kingdom, at Walt Disney World, in Lake Buena Vista, Florida, photographed Saturday, June 3, 2023.

Joe Burbank | Tribune News Service | Getty Images

Disney reports its fiscal second-quarter earnings before the bell Tuesday, and analysts will be paying attention to the company’s streaming subscriber growth and outlook, as well as visitation numbers at its theme parks.

It’s been more than a year since CEO Bob Iger announced a reorganization that saw a rejiggering of the company’s structure, thousands of job losses and $5.5 billion in cost cuts. This will also be Disney’s first earnings call since it won a proxy fight against Nelson Peltz’s Trian Partners.

Here is what Wall Street expects Disney to report Tuesday morning, according to LSEG:

  • Earnings per share: $1.10 expected
  • Revenue: $22.11 billion expected

The subscriber growth at its flagship streaming service, Disney+, will once again be a top focus. BofA Securities analyst Jessica Reif Ehrlich said Monday on CNBC’s “Squawk Box” that streaming is expected to hit profitability in the fourth quarter of 2024.

Last quarter Disney’s direct-to-consumer unit — which also includes Hulu and ESPN+ — saw its losses narrow to $216 million from $1.05 billion in the same period a year earlier.

The company reported in February that Disney+ core subscribers dropped by 1.3 million during the quarter compared with the prior quarter due to price hikes, although the company said it saw a rise in average revenue per user for the same reason.

Wall Street will also be looking for updates regarding the integration of Hulu into Disney+, as well as the status of the appraisal process that will value Comcast’s stake in Hulu.

Visitor traffic to Disney’s theme parks in the U.S. will also be in focus. Growth had started to slow last year, due to lower numbers in Orlando, according to a Deutsche Bank research note Monday.

Comcast recently reported a slowdown at its Universal Orlando theme park, noting increased competition, particularly from cruises. Analyst Reif Ehrlich noted this could work in Disney’s favor, since it has a new cruise ship.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

This is breaking news. Please check back for updates.


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