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

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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
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