Proactive Investors - Walt Disney Co (NYSE:DIS, ETR:WDP) will hand down its fiscal second quarter financial results before the stock market opens on Tuesday, May 7, and analysts see the company reporting year-over-year growth on the top and bottom lines.
The entertainment and theme park giant is expected to report revenue of $22.11 billion, up 1.3% year-over-year.
Earnings per share are expected to be $1.11, up almost 20% from $0.93 in the year-ago quarter.
Analysts at Bank of America (NYSE:BAC) raised their price target on Disney ahead of tis results, expecting to see continued strong underlying momentum in fiscal 2Q.
They raised their price objective from $130 to $145 and repeated their ‘Buy’ rating on the stock.
Shares of Disney traded up 2.6% at about $116 on Monday afternoon.
For fiscal 2Q, the analysts highlighted that park performance remains robust and they see operating income growing in the low to mid-teens. They forecast operating income of $3.7 billion.
Regarding the company’s streaming platform Disney+, the analysts see the addition of 7.5 million domestic subscribers, with a loss of 1.5 million international subscribers due to price increases.
“The company appears to be on pace to exceed $7.5 billion in cost savings and remains confident direct-to-consumer would reach profitability in fiscal 4Q,” they wrote.
“This, coupled with what appears to be an improving film slate, driving a positive free cash flow trajectory as well as capital returns and position the company well to sustain their strong share performance year-to-date.”
The analysts highlighted that, since his return as CEO in November 2022, Bob Iger “appears to be in command and on a growth offensive.”
“Having spent the past year restructuring the company, he is now focused on multiple bullish drivers for the company, including strong free cash flow generation with Disney on track to exceed with 2024 financial year guidance of $8 billion; continued momentum in parks and experiences with fiscal 2Q year-over-year operating income growth trending up low-to-mid teens; an improving film slate; and increased confidence in direct-to-consumer profitability by 4Q,” they wrote.
“Disney’s ability to meet and exceed these targets will continue to be drivers of share performance over the intermediate term.”