Tuesday's Market Minute: The Happiest Earnings on Earth?

Disney (DIS) reports 4Q earnings after the bell today. Zacks expects it to report earnings of $0.50 per share on revenue of $21.1 billion. Street consensus also expects Disney+ subscriber additions to grow about 38% year-over-year, a massive increase. Bloomberg writes that the streaming segment should show strength, citing its price increases and ad-supported tier launching in December. Not content with its ubiquity in stores and popular culture, Disney is also testing a feature that would allow Disney+ subscribers priority access to new merchandise.

Another aspect investors may be watching is what executives say about ESPN. As Amazon and other streaming networks jockey for sports programming rights, costs are rising. The service is also struggling to see growth. After last quarter’s report, Disney investor Daniel Loeb called for an ESPN spin off.Of course, streaming is only part of Disney’s business: its parks segment raked in over $7 billion last quarter, and analysts expect this quarter’s figure to be about 40% higher than last year’s. So, a banner quarter all around—though Hurricane Ian and COVID closures in Shanghai could impact profits. 

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