May 09, 2023

Walt Disney & Co. will release its latest earnings on Wednesday this week after a run of tech-based upside surprises.

DIS – Weekly Chart

DIS – Weekly Chart

The price of DIS stock is looking at holding onto a weekly support base and could push to the $115 resistance line.

Disney (DIS) is expected to post strong earnings growth for the first three months of the year as the entertainment firm shows a build in subscriptions for its streaming service and revenue from theme parks recovers with post-pandemic travel.

Net income at Disney is expected to be $1.29 billion, or 71 cents per share, which would be a significant 170% from the same period last year. Revenues are projected to be $21.8 billion, up 13% year-over-year and driven again by its streaming business which generates revenue through subscription fees and advertising. 

Revenues from the company’s theme parks and live experiences were higher than a year ago. They’re projected to be around $7.6 billion higher over the year. Revenues from the company’s theme parks suffered a severe downturn during the pandemic. However, the streaming business was able to cushion the blow. Subscription revenues from Disney+ are expected to be $2.23 billion this quarter and were likely higher by over 27% from the same period last year. Those same revenues have jumped from just $440 million in 2020. 

Disney recently caught up in a battle with Florida Gov. Ron DeSantis. The company wants to take legal action. The governor took on Disney over the company’s stance on the Florida Parental Rights and Education Act signed into state law in March last year. 

DeSantis also said he would strip Disney of its self-governing status, affecting the company’s property and taxes.

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