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Disney (DIS) fiscal Q4 2021 earnings

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The Magic Kingdom Park at Walt Disney World Resort hosts a stunning fireworks show on July 1, 2021 in Lake Buena Vista. You can read more.

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DisneyThe bell will ring Wednesday and the company is scheduled to announce fiscal fourth quarter earnings.

These are key numbers, as per a Refinitiv Survey:

  • Earnings per share:51c
  • Revenue$18.79 trillion

This company could see a slowing in growth for its Disney+ streaming service. The CEO of Goldman Sachs Communacopia Conference Bob Chapek indicated that this segment has experienced steady growth. “hit some headwindsDisney believes that streaming subscriptions will increase by “low single digit millions” in the fourth-quarter.

Wall Street appears more bullish that Chapek. StreetAccount predicts that Disney+ will see 125.4 Million subscribers in the fourth quarter. That’s 9.4 M new subscribers from the third quarter.

The company will provide guidance to subscribers for next year’s fiscal first quarter. Investors should be aware of this information. JPMorgan stated in an Oct. 25 note that investors are increasingly concerned that Disney will not be able reach its target of 230m to 260m Disney+ subscribers by 2024.

The JPMorgan analysts stated that they understood the reasons for these concerns given 1) the slowdown in growth over the past quarters; 2) increased competition and 3) the general concern that the first impressive sub-ramp was influenced by COVID-19 at-home effects and therefore isn’t representative of normalized growth.

Disney will provide quarterly updates on its theater business. It saw strong growth in the last quarter. The three-month-old films “Black Widow,” Free Guy, and “Shang-Chi and the Legend of the Ten Rings”, were all released by the company and had solid box-office performances.

In the final stretch of the year Disney will release the highly-anticipated films “Encanto,” and “Spider-Man: No Way Home”, which will be huge hits for both audiences in the United States and around the world.

Analysts will be paying close attention to comments made by the company regarding recovery in global resort and theme park business. Monday the U.S. lifted its pandemic travel restrictionsMany international tourists were barred from the country by the government since 2020. A surge in foreign tourists is a blessing for Disney’s domestic parks.

“Despite some minor hiccups during August’s domestic travel, Disney’s domestic park recovery should bring FY 2022 operating profit back to FY 2019. MoffettNathanson, in an October note, stated that this is unprecedented improvement and would likely result in Parks margins and profits exceeding prior peak levels going forward.

Although the parks were profitable, Disney’s Parks, Experiences and Products returned to profitability in the quarter that ended.

Disney’s future success is dependent on the recovery of the industry. The segment which encompasses hotels and cruises accounted for 37% in the $69.6 billion total revenue.

This story is still in development. Keep checking back for more updates.

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