Tuesday's Market Minute: Walt Disney (DIS) Earnings Preview

Walt Disney DIS is scheduled to report after the bell on Wednesday. Zacks expects earnings of $0.94 per share and revenue of $21.12 billion. Last quarter, the behemoth missed estimates. Despite a bounce up from mid-July lows, the stock is down almost 40% over the last year.

Investors have been scrutinizing Disney+ subscriber numbers as the streaming wars continue and movie theaters and Disney’s parks were closed due to COVID-19. Netflix (NFLX) reported a loss of nearly one million subscribers in its second quarter, but the Street rewarded the stock because the losses weren’t as great as feared. A relative newcomer to the ever-more-crowded playing field, will Disney+ gain some of Netflix’s defectors, or lose subscribers as inflation and the outside world whittle away consumers? 

Of course, unlike Netflix, Disney is a multi-headed business. A Barron’s article this week mentioned Disney’s parks segment as a tailwind for the stock, citing 40% higher per-capita spending than 2019 levels despite fears of recession. The overall question seems to be how investors will weigh each of Disney’s segments, and how the company guides going forward. Will investors lean heavier on streaming, or towards movie releases and parks revenue?

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