Disney Stock: Analysts Bullish Ahead of Earnings, Citing Streaming and Experiences Growth

As Walt Disney Co. (DIS) prepares to report its fiscal 2025 first-quarter earnings before the bell on Wednesday, analysts are largely bullish on the entertainment conglomerate's stock, with an average price target of $127.27, a premium of nearly 13% from its closing price on Friday. The analysts tracked by Visible Alpha are split between seven "buy" and four "hold" ratings, indicating a mostly positive outlook on Disney's stock.

Analysts are expecting revenue to rise nearly 5% year-over-year to $24.63 billion, with profit expected to jump roughly 25% to $2.38 billion, or $1.31 per share. The profitability of Disney's streaming and experiences business has been a focus of recent analysts' comments, with Citi and UBS analysts expecting streaming profitability to improve in Q1 and beyond.

Disney's streaming business, consisting of Hulu, Disney+, and ESPN+, turned profitable earlier than expected in the third quarter and profits grew in Q4. Analysts expect this trend to continue, as Disney's streaming services have been gaining subscribers and increasing revenue. The acquisition of FuboTV, which will merge with Disney's Hulu + Live TV offering, is also expected to boost Disney's streaming presence and subscriber base.

Disney's "Experiences" segment, which includes theme parks and cruise ships, is expected to face temporary setbacks in Q1 due to costs associated with new cruise ships and hurricanes affecting park attendance. However, UBS analysts expect this segment to rebound as these issues are resolved. Disney's theme parks and resorts have been a significant driver of revenue and profit growth in the past, and analysts expect this trend to continue in the long term.

Analysts also expect Disney's annual earnings to grow faster than the American market, aligning with the company's recent growth trends. Disney has consistently shown strong earnings growth, with earnings growth over the past year exceeding the industry average. Additionally, Disney's annual revenue is forecast to grow, although at a slower pace than the American market. This growth trend is expected to continue, as Disney continues to expand its streaming services, theme parks, and other business segments.



In conclusion, analysts' bullish sentiments towards Disney stock are driven by the company's strong earnings growth, the profitability of its streaming and experiences segments, and its strategic acquisitions, such as FuboTV. With an average price target of $127.27, analysts expect Disney's stock to continue to perform well in the long term. As Disney reports its fiscal 2025 first-quarter earnings, investors will be watching closely to see if the company's financial performance aligns with analysts' expectations.