Disney: Potential Subscriber Loss Takes Center Stage Ahead of Key Earnings

investing.com:

The spotlight is on Walt Disney Company (NYSE:DIS) as the entertainment behemoth prepares to unveil its latest quarterly financial results after today's market close.

In the previous report last August, the Burbank, California-based company managed to exceed expectations in earnings per share (EPS) but fell slightly short in quarterly revenue, showcasing a mixed performance.

DIS's lackluster performance in its broadcasting business has contributed to analysts' apprehensive outlook for the Q4 financial results.

A look at the InvestingPro analyst survey reveals that over the past three months, 14 analysts have downwardly revised their expectations for both EPS and revenue. In contrast, only 3 analysts have raised their forecasts.

Source: InvestingPro

While some analysts present a pessimistic outlook for Disney's last quarter earnings, it's essential to consider the current negativity as a potentially short-lived phase, especially when focusing on future forecasts. In fact, there is an estimate that Disney's earnings per share (EPS) could increase to around $1 by the end of the year, showcasing an optimistic shift.

Projections also indicate that revenue expectations for the current quarter are currently set at $24.2 billion, marking a 10% increase. Notably, the company's robust performance in international theme parks is cited as a compelling reason for this improved outlook as the year concludes.

Source: InvestingPro

Price forecasts for DIS shares based on a 12-month period reflect the share's upside potential of close to 30%. Although analysts offer a downward revision for the 4th quarter, they foresee a value increase of close to 25% from the current level over a one-year period. InvestingPro's fair value analysis also