Disney Earnings Due: Analysts Bullish on Theme Parks, Streaming

As Disney prepares to report its fiscal 2024 first-quarter earnings on Wednesday, analysts are expressing bullish sentiments about the company's theme parks and streaming services. With revenue and profit expected to rise, Disney's investment in content creation and distribution for its streaming services is poised to play a significant role in future earnings.

Disney's theme parks segment reported record high revenue and operating income for the full year 2024, with a 5% increase in revenue and a 4% increase in operating income compared to 2023. The company's Experiences segment, which includes theme parks, cruises, and other experiences, generated $34.1 billion in topline revenue, a 5% increase versus 2023, and nearly $9.3 billion in operating income, a 4% increase versus last year. This strong performance demonstrates Disney's ability to turn the corner and enter a new era of growth and success.

Disney's streaming services, including Disney+, Hulu, and ESPN+, have also contributed significantly to the company's revenue growth. In 2023, Disney Plus generated $8.4 billion in revenue, an 13% increase year-on-year. Disney Plus has seen steady subscriber growth, reaching 157.8 million subscribers in 2023, although growth has slowed down recently. The platform's success is largely due to its strong content library from Disney's various brands, such as Pixar, Marvel, Lucasfilm, and 20th Century Studios. Original series like "The Mandalorian" and "WandaVision" have also played a huge role in attracting viewers and building a loyal fan base.

Analysts expect Disney's investment in content creation and distribution for its streaming services to play a significant role in future earnings. They are mostly bullish on Disney's stock, with the analysts tracked by Visible Alpha split between seven "buy" and four "hold" ratings. They have an average price target of $127.27, a premium of nearly 13% from its closing price Friday. Revenue is expected 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. Analysts from Citi and UBS said recently that they expect streaming profitability to improve in Q1 and beyond.

In conclusion, Disney's investment in content creation and distribution for its streaming services has a significant impact on the company's long-term growth prospects. The company's strong content strategy, which includes a diverse range of content from various brands and successful original series, has attracted and retained subscribers. Analysts expect this investment to play a significant role in future earnings, with revenue and profit expected to rise in the coming quarters. As Disney continues to invest in its theme parks and streaming services, it is well-positioned to maintain its bullish outlook and drive growth in the future.