Burbank, California-based The Walt Disney Company (DIS) is a global entertainment company. Valued at $200.8 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 fourth-quarter earnings for 2025 before the market opens on Thursday, Nov. 13.
Ahead of the event, analysts expect DIS to report a profit of $1.03 per share on a diluted basis, down 9.7% from $1.14 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 $5.87, up 18.1% from $4.97 in fiscal 2024. Its EPS is expected to rise 10.4% year over year to $6.48 in fiscal 2026.
DIS stock has outperformed the S&P 500’s ($SPX) 16.9% gains over the past 52 weeks, with shares up 17.1% during this period. However, it underperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 27.5% gains over the same time frame.
Disney's strong performance is driven by its profitable streaming business, with room for margin improvement as ad sales grow and prices increase. The company's sports focus, including its new direct-to-consumer ESPN service and theme park investments, such as a new park in Abu Dhabi, is also a key growth driver. Disney's box-office success adds value to its streaming offerings and strengthens customer relationships, potentially boosting theme park traffic.
On Aug. 6, DIS shares closed down by 2.7% after reporting its Q3 results. Its adjusted EPS of $1.61 exceeded Wall Street expectations of $1.46. The company’s revenue was $23.65 billion, missing Wall Street forecasts of $23.68 billion. DIS expects full-year adjusted EPS to be $5.85.
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 $136.58, indicating a potential upside of 22.3% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
