The Walt Disney Company (DIS) is set to release its fiscal second-quarter 2025 financial results before the market opens Wednesday, May 7th. The upcoming earnings report is a focus for investors tracking the entertainment giant's performance.
Market analysts are largely bullish on the media company's stock ahead of the announcement. Five of seven analysts surveyed by Visible Alpha rate the stock a "buy." The remaining two analysts rate it a "hold."
Consensus analyst estimates forecast Walt Disney to report $23.17 billion in revenue for the second quarter. This figure represents a roughly 5% increase compared to the same quarter in the previous year. Expected adjusted earnings per share are $1.20, a slight decrease from the year-ago period.
Another survey by MarketBeat forecasts similar results, predicting $23.15 billion in revenue and earnings of $1.19 per share for the quarter.
In the previous quarter, The Walt Disney Company exceeded revenue and profit expectations. However, the company reported a small drop in subscribers for its Disney+ streaming service, totaling 124.6 million. Management projected another slight decrease in subscribers for the second quarter.
UBS analysts recently reaffirmed a "buy" rating on the DIS Stock, though they adjusted their price target downward to $105 from $130. These analysts anticipate a robust second quarter, supported by demand in parks, contributions from a new cruise ship, and steady sports advertising revenue.
However, UBS also highlighted potential "recession risk" for the latter half of the fiscal year. Such conditions could negatively impact advertising revenue and attendance at Disney's experiences segments.
Recent trading saw shares of Walt Disney close Friday at $92.52, trading up $1.71. The stock's 50-day moving average is $95.08, and its two-hundred day moving average is $104.12. The company holds a market capitalization of $167.26 billion.
Analyst price targets for The Walt Disney Company stock vary, with an average target of $123.75, according to MarketBeat data. This average target suggests a potential premium compared to the stock's current trading level. Ratings from research analysts include a majority recommending a "buy" or "strong buy," with some assigning "hold" or "neutral" ratings. For example, MarketBeat tracks six hold ratings, seventeen buy ratings, and two strong buy ratings.
Institutional investors maintain a notable stake in the stock. According to a recent filing with the Securities and Exchange Commission (SEC), Brighton Jones LLC increased its holdings in The Walt Disney Company by 7.7% during the fourth quarter. Approximately 65.71% of the stock is held by institutional investors and hedge funds.
