The Walt Disney Company
is scheduled to announce fourth quarter earnings after the market closes on Thursday. Here's what you need to know.
Disney's cable segment has suffered lackluster results for the past three years, thanks to increasing cord-cutting among viewers. Now the House of Mouse is het opbouwen van ammunitie om mee te doen aan de streamingwars; It debuted direct-to-consumer streaming service ESPN + in April and is preparing for the launch of a dedicated Disney streaming service in late 2019.
Disney also finalized a deal to acquire 21st Century Fox's
entertainment assets, including the storied Twentieth Century Fox TV and film studios, cable networks including FX and National Geographic Channel, Star India and Fox's stake in Hulu. The deal was initially valued at $ 71 billion and included Fox's 39% stake in Sky PLC. But Fox was in September to sell that stake to Comcast Corp.
CMCSA, + 0.41%
after losing a fierce bidding war for majority control of Sky. Now the deal will cost Disney significantly less.
Also : 21st Century Fox cable revenue growth layer
On Thursday, investors will Be looking for further details on Disney's plans for the new Fox assets. Chief Executive Bob Iger tossed out a few hints during Disney's third-quarter earnings call, including that Fox's Searchlight label will likely produce original movie and TV for Disney's streaming service. And in October, Iger announced several top Fox TV executives would be moving to Disney's TV division.
The company's streaming strategy will be at the top of investors' minds. Investors will be looking for an update on subscription growth at ESPN +, along with any further details about Disney's direct-to-consumer service.
Then there is the question of Hulu. The streaming service was once a joint venture with Fox, Disney, Comcast and AT & T, with the companies owning 30%, 30%, 30% and 10% respectively. But with the Fox deal, Disney will end up with a 60% stake. What role will Hulu play in Disney's new universe, especially considering Disney's own plans to launch a streaming service? Og vil selskapet forsøke å kjøpe den resterende satsningen fra Comcast og AT & T?
As for earnings, here's what to expect:
Earnings : Analysts polled at FactSet expect Disney to post earnings or $ 1.34 a share, a 25% increase from the fourth quarter of 2017.  Estimate, which crowdsources estimates from buy-side and sell-side analysts, fund managers, academics and others, is expecting EPS or $ 1.35.
Revenue : Analysts polled at FactSet expect revenue of $ 13.73 billion, with $ 5.7 billion coming from media networks and $ 5.08 billion from the parks and resorts segment. Disney's consumer products and interactive media division are expected to bring in revenues of $ 1.16 billion, while the studio division is expected to bring in revenues of $ 1.78 billion. Estimize pegs total revenue at $ 13.9 billion.
Disney reported revenue of $ 15.2 billion in the fourth quarter of 2017.
Stock movemen t: Shares of Disney were trading at $ 115.60 a share on Wednesday morning and have gained 7.5 % in the year to date. The S & P 500
SPX, + 1.26%
has gained 3.8% in the year to date and the Dow Jones Industrial Average
DJIA, + 1.04%
which counts Disney as a member, has gained 4.8%.
Of the 24 analysts on FactSet who cover Disney, 13 rate the stock as buy or its equivalent, 10 rate it as neutral and 1 rate it at underweight, or sell. The average stock target price is $ 121.99, which is about 5.5% above current levels.