Disney, the global entertainment giant, will release its highly anticipated second-quarter earnings report to investors on Tuesday morning.
The company, led by CEO Bob Iger, has announced that it will be changing its usual practice of reporting earnings after the stock market closes to before it opens in the morning.
One of the main questions on the minds of Disney investors is who will succeed Iger as CEO when he retires in 2026. While there has been speculation about potential candidates, including division executives like Josh D’Amaro, James Pitaro, Dana Walden, and Alan Bergman, the company has yet to officially announce a successor.
In addition, there has been a recent leadership shake-up at ABC News, with Kim Godwin retiring and Debra O’Connell taking over as president of the Disney Entertainment News Group and Networks. This change comes as Disney’s linear networks business, which includes ABC News, has faced ongoing challenges.
The company’s streaming business, which includes Disney+, Hulu, and ESPN+, is a major focus for Disney as it looks to become profitable in the streaming space. In the first quarter, this segment had a collective 224.5 million subscribers worldwide. To reach profitability, Disney is taking steps such as cracking down on password-sharing and rolling out a feature that allows people to pay an extra charge for non-household members to stream with their subscriptions.
Disney’s combined streaming business reported $6.075 billion in revenue last quarter, with an operating loss of $216 million, down 79% from the previous year. The company has stated that it is confident in its path to creating a strong and sustainable streaming business with growing subscribers and double-digit operating margins in the long term.
The magic of Disney has faded.$DIS reported an $18 million loss on streaming and poor box office numbers.
The woke bug bit this once beloved brand, leaving many Americans disenchanted. pic.twitter.com/r6lbPOnp3W
— David Nicholas (@DavidANicholas) May 7, 2024
Investors will also be looking at the company’s overall financial performance, including its theme parks, which have been impacted by closures and restrictions due to the pandemic, not to mention their participation in woke policies.
BREAKING: Disney stock falls over 10% after reporting weaker than expected Q1 2024 earnings.
Disney reported quarterly revenue of $22.1 billion and 153.6 million Disney+ subscribers, both of which were below expectations. pic.twitter.com/qcNBK8XTBO
— The General (@GeneralMCNews) May 7, 2024
Overall, Disney’s second-quarter earnings report will provide insight into the company’s progress towards profitability in the streaming market and its recovery from the pandemic, its highly politicized views and boycotts. As a major player in the entertainment industry, Disney’s performance will be closely monitored by investors and analysts alike.
Over 71% of American adults want Disney to drop ‘LGBTQIA’ agenda in kid’s films.
Yet Disney won’t do it.https://t.co/BMLrVzvS7k
— OutKick (@Outkick) May 7, 2024
