Disney (DIS) Q3 Earnings Report Preview: What To Look For

Global entertainment and media company Disney (NYSE:DIS) will be announcing earnings results tomorrow morning. Here’s what investors should know.

Disney met analysts’ revenue expectations last quarter, reporting revenues of $23.16 billion, up 3.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ operating margin and earnings estimates.

Is Disney a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Disney’s revenue to grow 5.9% year on year to $22.49 billion, in line with the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.11 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Disney has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Disney’s peers in the media segment, some have already reported their Q3 results, giving us a hint as to what we can expect. fuboTV delivered year-on-year revenue growth of 20.3%, beating analysts’ expectations by 2.5%, and Warner Bros. Discovery reported a revenue decline of 3.6%, falling short of estimates by 1.7%. fuboTV traded down 17% following the results while Warner Bros. Discovery was up 9.9%.

Read our full analysis of fuboTV’s results here and Warner Bros. Discovery’s results here.

There has been positive sentiment among investors in the media segment, with share prices up 5.9% on average over the last month. Disney is up 7.2% during the same time and is heading into earnings with an average analyst price target of $110.67 (compared to the current share price of $101).

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