Disney’s Streaming Momentum and CEO Succession Plan Take Center Stage Ahead of Q4 Earnings
Wall Street and investors are eagerly awaiting Walt Disney Co.’s fourth-quarter earnings report today, anticipating signs of continued streaming success and clues about the company’s leadership future.
The entertainment giant has shown resilience in 2024, with its stock climbing 11.33% year-to-date, outpacing rivals Warner Bros Discovery and Paramount Global, though still trailing Netflix’s impressive 65% gain.
Key Financial Expectations
Analysts are projecting strong results for Disney’s fiscal Q4:
- Earnings per share: $1.10
- Revenue: $22.45 billion
- Entertainment revenue: $10.66 billion
- Sports revenue: $3.95 billion
- Experiences revenue: $8.20 billion
Streaming Success Story
The spotlight remains on Disney’s streaming division, which marked a significant milestone last quarter by turning profitable for the first time. Disney+ anticipates adding approximately 2 million new subscribers, a decrease from the 4.1 million additions observed in Q4 2023.
Recent strategic moves are expected to enhance streaming performance:
- Password-sharing crackdown rollout
- Price increases across subscription plans
- Growing ad-supported tier adoption
Theme Parks: A Tale of Two Markets
The company’s parks division faces mixed signals. While international locations show promise, U.S. parks have reported flat attendance levels. Investors will closely monitor whether recent promotional efforts and seasonal events have helped stimulate domestic visitor numbers.
Leadership Transition Takes Shape
Perhaps the most anticipated update revolves around CEO Bob Iger’s succession plan. The company recently announced its intention to name Iger’s replacement in early 2026, with incoming board chairman James Gorman leading the search. This transition marks a crucial moment for Disney’s future direction.
Stock Performance and Market Position
Disney’s stock has shown positive momentum:
- The market is currently trading at $100.99, surpassing significant moving averages.
- RSI of 72.07 indicates overbought conditions.
- Analyst consensus maintains a “Buy” rating.
- Average price target of $117.44 suggests 10% upside potential.
Looking Ahead
Bank of America analyst Jessica Reif Ehrlich maintains a positive outlook with a $120 price target, citing Disney’s “best-in-class premiere assets.” However, she cautions that continued streaming investments might affect near-term profitability.
The earnings report comes at a pivotal time for Disney as it balances multiple priorities:
- Maintaining streaming growth while driving profitability
- Revitalizing park attendance
- Managing the leadership transition
- Adapting to changing media consumption patterns
Wall Street will particularly focus on Disney’s ability to maintain its streaming momentum amid fierce competition, with rivals like Warner Bros. Discovery’s Max adding 7.2 million subscribers and Netflix gaining 5 million customers in their recent quarters.
As Disney navigates these challenges, today’s earnings report will provide crucial insights into the entertainment giant’s strategic direction and its ability to maintain its position as a leader in both traditional and digital entertainment spaces.
Executives will likely provide additional context on these key areas and answer investor questions about the company’s future plans during the 8:30 AM ET earnings call.