Burbank, California-based The Walt Disney Company (DIS) operates as an entertainment company worldwide. Valued at $195.7 billion by market cap, the company's businesses include, media networks, parks and resorts, studio entertainment, consumer products, and interactive media. The entertainment giant is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Wednesday, Feb. 5.
Ahead of the event, analysts expect DIS to report a profit of $1.45 per share on a diluted basis, up 18.9% from $1.22 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect DIS to report EPS of $5.41, up 8.9% from $4.97 in fiscal 2024. Its EPS is expected to rise 13.3% year over year to $6.13 in fiscal 2026.
DIS stock has underperformed the S&P 500’s ($SPX) 22.1% gains over the past 52 weeks, with shares up 19.7% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 29.4% gains over the same time frame.
Disney's underperformance in recent years can be attributed to challenges in its pivot to streaming, as well as a decline in its legacy media business. Moreover, rising operational costs, upcoming expenses for Disney Cruise Line, and a modest forecast for Disney+ subscriber growth have added to investor concerns, overshadowing improvements in streaming profitability.
On Nov. 14, DIS shares closed up more than 6% after reporting its Q4 results. Its adjusted EPS of $1.14 surpassed Wall Street expectations of $1.09. The company’s revenue was $22.57 billion, missing Wall Street forecasts of $22.59 billion.
Analysts’ consensus opinion on DIS stock is bullish, with a “Strong Buy” rating overall. Out of 29 analysts covering the stock, 20 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and seven give a “Hold.” DIS’ average analyst price target is $128.76, indicating a potential upside of 19.1% from the current levels.
