Disney is set to report its Q4 fiscal earnings on Thursday morning.

Leadership & Structure:

• CEO Bob Iger will step down by end of 2026; successor announcement expected in early 2026
• James Gorman becoming board chairman in January 2025
• Business now organized in three segments: Entertainment, Experiences, and Sports

Financial Expectations:

• Revenue forecast: $22.47B (up from $21.24B last year)
• Expected EPS: $1.10 (up from $0.82)
• Projected segment revenues:
  • Entertainment: $10.66B
  • Sports: $3.95B
  • Experiences: $8.20B
• Disney+ expected to add 2M subscribers (down from 4.1M last year)

Key Business Updates:

• Streaming division reached profitability in August
• Recent subscription price increases implemented
• New sports streaming venture (Venu Sports) with Warner Bros. Discovery and Fox facing delays
• ESPN standalone streaming platform planned for 2025
• Parks division facing challenges with domestic revenue down 6% in Q3
• Stock performance lagging behind S&P 500 (13% vs 25% growth)

Challenges & Outlook:

• Parks facing attendance pressures domestically
• International operations affected by events like Paris Olympics and weather issues
• Streaming profitability growth may slow due to continued investments
• Analysts remain optimistic despite near-term pressures, with Bank of America maintaining a “Buy” rating and $120 target price