February 1, 2025
The Walt Disney Co. ( DIS ) is set to report fiscal 2025 first-quarter results Wednesday morning, with analysts expecting rising revenue and net income as the profitability of the entertainment giant's streaming business remains a focus.
Analysts 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.
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 from Citi and UBS said recently that they expect streaming profitability to improve in Q1 and beyond.
In early January, Disney, Warner Bros. Discovery ( WBD ), and FOX ( FOX ) abandoned their yet-to-be-launched streaming service Venu Sports . The announcement came days after Disney and FuboTV ( FUBO ) said they would resolve one of the legal challenges against Venu Sports by merging streaming competitor Fubo—which had sued to block the service's launch—with Disney's Hulu + Live TV offering.
UBS analysts also wrote that they expect Disney's "Experiences" segment profitability to take a hit in the quarter because of costs associated with its new cruise ships , and impact on park attendance from the hurricanes that hit the South late last year.
Disney shares are up about 17% over the last 12 months.
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