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will-disney’s-earnings-crown-it-the-streaming-queen-or-media-underdog

Will Disney’s Earnings Crown It the Streaming Queen or Media Underdog?

For CEO Bob Iger, the summer has been very busy.

The CEO of the Walt Disney Company extended his contract, brought two former executives back as advisors, and for a moment, took the blame for the Hollywood strikes. Iger has a four-year plan to revive Disney, but the early signs are conflicting.

Disney’s stock has dropped 11% since CEO Bob Iger returned to the firm in November, despite the long-standing positive sentiment of Wall Street toward him, while the S&P 500 index has increased by 13%.

At the conclusion of trading on Wednesday, the company will release its quarterly profits. As its share price has been falling for two years and is now worth less than half of its 2021 peak, better-than-expected results could provide Disney a much-needed stock lift.

Two-thirds of Wall Street analysts recommend investors buy the company, according to Seeking Alpha, indicating that the majority of analysts are bullish on the future of Disney’s stock.

Disney’s recent cost-cutting initiatives and the lessening of criticism from the political left and right are some of their justifications. Economists anticipate Disney will announce quarterly revenue of $22.5 billion, up 5% from the same period last year and 3% from the preceding quarter.

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Subscribers Soar, but Financial Challenges Persist

will-disney’s-earnings-crown-it-the-streaming-queen-or-media-underdog
For CEO Bob Iger, the summer has been very busy.

Disney is in a strong position to compete in the streaming wars, as it has more subscribers than only Netflix. There are 231 million subscribers across all of Disney’s properties, 158 million of whom are for Disney+. 238 million people use Netflix. Disney+ and Hulu are in second and third place in terms of streaming revenue, respectively, after Netflix.

Except for Netflix, none of the media industry’s streaming assets are currently profitable. Even while Disney isn’t losing the most money, it isn’t either.

Despite having a small portion of Disney’s subscriber base, Paramount, which owns Paramount+, generates smaller losses than Disney’s business does. Disney lost $4.2 billion on its streaming business in the year that ended with its most recent earnings report in May.

It generated $87 billion in income over that time. Any advancement toward that objective—or indications of slippage—will be crucial given that the business anticipates the sector to begin turning a profit by the end of the current fiscal year (2024).

Investors may also want to hear from Iger over the PR disaster he created with his comments regarding the Hollywood writers’ and actors’ strike. In a recent interview with CNBC’s Squawk Box, Iger stated, “There’s a degree of expectation that they have that is just not realistic.”

He was speaking from the so-called billionaire’s summer camp, the Sun Valley Conference in Idaho. Celebrities and social media users quickly criticized the unions’ demands, pointing out that the CEO is projected to earn $27 million in 2023 and an increase in remuneration the following year.

Disney’s stock dropped 5% in the days that followed.

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Source: MSN

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