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Key Takeaways
- Disney is slated to report fiscal third-quarter results Wednesday morning, with analysts bullish on the media giant’s stock.
- Revenue and profits are expected to rise year-over-year, and Disney said last quarter it expects to add Disney+ subscribers in this quarter.
- Analysts have said recently that Disney should see solid demand for its theme parks and cruises, and that new film releases and cruise ships could propel the stock later this year.
The Walt Disney Co. (DIS) is set to report its results for the third quarter of fiscal 2025 before the market opens Wednesday, with analysts expecting rising revenue and profits and resilient demand for its experiences segment.
Analysts are broadly bullish on Disney, with six of the seven tracked by Visible Alpha calling the media and entertainment giant a “buy,” compared to just one “hold” rating. The average price target of near $136 represents upside of about 17% from Friday’s close, and would mark Disney’s highest price since April 2022.
Disney is projected to report $23.75 billion in revenue and adjusted earnings per share of $1.48, each up from the same time a year ago, per estimates compiled by Visible Alpha.
Disney topped estimates last quarter, reported a surprise increase in Disney+ subscribers and predicted another bump in Q3, and announced plans to build a theme park in Abu Dhabi, the capital of the United Arab Emirates. The company lifted its adjusted EPS projection to $5.75, up 16% from fiscal 2024, after previously forecasting a high single-digit increase.
Analysts Expect Solid Quarter With New Cruise Ships, ESPN Streamer On the Way
UBS analysts recently lifted their price target to $138 from $120 previously, and said they expect the quarter to show “resilient demand” across Disney’s theme parks and improving streaming profitability ahead of Disney-owned ESPN’s launch of a new streaming service later this year.
“We remain constructive on the outlook for [the 2026 fiscal year] given underlying trends at the parks, new cruise capacity, strong content pipeline and inflecting margins in [direct-to-consumer] with upside from full control of Hulu,” the UBS analysts wrote.
Jefferies analysts recently wrote that this is a “key quarter” for Disney to establish its “narrative” for the next two years. The analysts said they still feel confident about their recent upgrade to “buy” and $144 price target, given the company’s “favorable catalyst path” of upcoming film and streaming releases, and the launch of its two new cruise ships by the end of the calendar year.
