Disney’s recent earnings report left Wall Street with mixed feelings, resulting in a notable drop of around 10% in its stock price. While the company achieved a record profit in Q1 and raised its guidance for the rest of 2024, there were concerns about challenges in certain areas, such as theme parks.
Despite strong progress toward streaming profitability, Disney reported mixed fiscal second-quarter earnings. The company’s CFO highlighted some near-term challenges, including a global moderation in post-COVID travel, impacting theme park attendance.
Analysts had differing views on Disney’s performance. Kenneth Leon from CFRA Research downgraded the stock, citing concerns about inconsistent results in entertainment and sports units. On the other hand, Jessica Reif Ehrlich from Bank of America maintained a bullish outlook, emphasizing Disney’s improved fiscal year outlook and the performance of its direct-to-consumer segment.
UBS analyst John Hodulik highlighted mixed trends but maintained a positive stance, focusing on Disney’s increased full-year earnings outlook and profitability in its streaming division.
Wolfe Research’s Peter Supino emphasized better results in Disney’s direct-to-consumer and sports segments but noted softer performance in linear networks and content/licensing.
Looking beyond Wall Street, Third Bridge analyst Jamie Lumley pointed out Disney’s progress toward streaming profitability but also highlighted challenges, such as goodwill impairments and cord-cutting pressures.
One lingering question for investors is Disney’s succession planning, with uncertainty surrounding who will succeed CEO Bob Iger. While Dana Walden is seen as a frontrunner, Disney’s board is taking its time to find the right candidate.
Overall, Disney’s latest earnings report prompted a range of reactions from analysts, reflecting both optimism about its streaming business and concerns about other areas of its operations.
