Copyright Benzinga
Media giant The Walt Disney Company (NYSE:DIS) could be tasked with answering questions on setbacks like the suspension of Jimmy Kimmel, tough box office comparisons and a carriage dispute with YouTube when the company reports fourth-quarter financial results Thursday before market open. Here are the earnings estimates, what experts are saying ahead of the report and key items to watch. Earnings Estimates: Analysts expect Disney to report fourth-quarter revenue of $22.75 billion, up from $22.57 billion in last year's fourth quarter, according to data from Benzinga Pro. The company has beaten analyst revenue estimates in five of the last 10 quarters. Analysts expect Disney to report fourth-quarter earnings per share of $1.05, down from $1.14 in last year's fourth quarter. Disney has beaten analyst earnings-per-share estimates for nine straight quarters. Read Also: Top Stocks With Earnings This Week: Plug, Oklo, Circle And More What Experts Are Saying: Streaming could be the key topic from Disney in the fourth-quarter results, Rosenblatt analyst Barton Crockett said ahead of the report. The analyst maintained a Buy rating on Disney with a price target of $141. Crockett expects Disney to address its new ESPN streaming platform and price increases for Disney+ customers. Other topics include new cruise ship launches and the theme parks division. The analyst also noted that Disney could provide an update on its CEO succession plan. “We continue to see a positive trajectory to revenue and earnings fueled by streaming and parks,” Crockett said. Crockett estimates the new ESPN streaming platform will hit around 500,000 subscribers in its first launch quarter and two million subscribers by the end of fiscal 2026. He adds that it can "drive nearly $500M in new revenue" in 2026. The analyst said the ESPN platform’s revenue will be “largely incremental to EBITDA,” with content licenses already baked into Disney’s financials. For Disney+, Crockett expects the platform to add around 500,000 net new domestic subscribers in the fourth quarter. Going forward, the analyst said Disney raising the price of Disney+ plans could grow average revenue per user by around 15% in the next fiscal year. Freedom Capital Markets Chief Market Strategist Jay Woods said Disney could answer some concerns during its quarterly results. "How is streaming and the direct-to-consumer business growing? Have inflation concerns impacted parks, experiences and consumer products? What kind of guidance can we expect and is there any update on Bob Iger's successor?" Woods said in a weekly newsletter. Woods said Disney stock is "basically flat for the year" and holding the $110 support level. Woods said a strong earnings report could see shares break above $114 and make a run to new 52-week highs before the end of the year. Key Items to Watch: Disney's report comes at a key time for the company, with a recent combination with FuboTV to strengthen streaming, the ending of ESPN Bet, a carriage dispute with YouTube, and the lingering potential subscriber losses from the Jimmy Kimmel suspension. Streaming will be the key item and this marks the last quarter that Disney will share quarterly figures for key streaming subscribers. Investors and analysts will be watching to see if the Kimmel suspension led to large subscriber losses and if the company gained subscribers ahead of price increases. Disney increased the ad-free and ad-supported plans by $3 and $2 respectively on a monthly basis in October, which was after the quarter ended. The dispute with YouTube has left customers unable to watch key Disney programming, including ESPN and ABC. With the disagreement happening during the NCAA Football and NFL seasons, sports fans are the most upset. It could be interesting to hear how Disney frames the demands and what it is doing to get a deal done. The fourth-quarter results could see a significant dip in box office performance with the company up against tough comparables of "Deadpool & Wolverine" last year. The company had two of the top 10 grossing films in the quarter domestically with "The Fantastic Four: First Steps" and "Freakier Friday" ranking third and eighth, respectively. The total gross of the films combined is around 57% of the gross of "Deadpool & Wolverine" in last year's fiscal fourth quarter. Disney will likely choose to focus on the strength of its upcoming content slate, which includes "Zootopia 2" and "Avatar: Fire and Ash" in movie theaters in November and December, respectively. The company also has the exclusive launch of a Taylor Swift docuseries on Disney+ on Dec. 12. The media giant could provide early guidance for the next fiscal year, which could ultimately determine where shares trade heading into the end of the calendar year. DIS Price Action: Disney stock is up 2% to $114.52 on Tuesday versus a 52-week trading range of $80.10 to $124.69. Disney stock is up 3.3% year-to-date in 2025. Read Next: Disney Raises Streaming Prices: Is Disney+ Now More Expensive Than Netflix? Photo by kovop via Shutterstock
