Walt Disney’s Quarterly Earnings Preview: What You Need to Know
Valued at a market cap of $157.8 billion, The Walt Disney Company (DIS) is a diversified worldwide entertainment company. The Burbank, California-based company operates through Entertainment, Sports, and Experiences segments.
The mass media and entertainment conglomerate company is expected to release its Q2 2025 earnings before the market opens on Wednesday, May 7. Ahead of this event, analysts expect DIS to post adjusted earnings of $1.19 per share, reflecting a decline of 1.7% from $1.21 per share reported in the same quarter last year. However, the company has surpassed Wall Street's bottom-line estimates in the past four quarters.
For fiscal 2025, analysts expect Walt Disney to report an adjusted EPS of $5.47, marking an increase of 10.1% from $4.97 in fiscal 2024. Moreover, its earnings are expected to further grow 11.2% year-over-year to $6.08 per share in fiscal 2026.
Shares of DIS have crumbled 23.2% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 6% gain and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 13.8% return during the same time frame.
DIS stock prices fell 2.4% following the release of its strong Q1 2025 results on Feb. 5. The company reported revenue of $24.7 billion, up 5.1% year-over-year. Driven by higher domestic ESPN advertising revenue, the Sports segment's operating income rose 41% from the prior-year quarter to $350 million. Disney+ and Hulu subscriptions totaled 178 million, representing an increase of 0.9 million from Q4 fiscal 2024. Its adjusted EPS came in at $1.76, up 44.3% year-over-year, and exceeded the consensus estimate by 22.2%.
Looking ahead to fiscal 2025, Walt Disney Company expects double-digit segment operating income growth in Entertainment, including a $875 million increase in Direct-to-Consumer income, and 13% growth in its Sports segment.
Analysts' consensus view on DIS is bullish, with a "Strong Buy" rating overall. Among 29 analysts covering the stock, 21 suggest a "Strong Buy," two recommend a "Moderate Buy,” and six give a “Hold” rating. Its mean price target of $125.58 represents a 43.9% premium to current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.