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Disney (DIS) to Post Q1 Earnings: Key Factors to Consider

The Walt Disney Company’s DIS first-quarter fiscal 2023 results, set to be reported on Feb 8, are expected to benefit from the strong performance of Avatar’s sequel. However, the top line is likely to reflect a stalled Disney+ subscriber base.

The latest Avatar movie generated $63.4 million in domestic ticket sales in the first three days and globally $2.18 billion since its release on Dec 16. This puts the movie on track to beat Paramount Global’s PARA Top Gun: Maverick’s total gross return, which has the bragging rights as the highest-grossing movie at the domestic box office for 2022.

Paramount Global’s Tom Cruise movie secured $1.49 billion in sales in 2022. However, Avatar: The Way of Water became the fastest release to cross the box office’s $1 billion threshold since Spider-Man: No Way Home in December 2021, and the fastest in 2022. The movie is en route to becoming the highest-grossing movie.

However, Avatar: The Way of Water failed to win at this year’s Golden Globe in Best Picture, Drama category, in which Comcast’s CMCSA Universal Picture emerged victorious with The Fabelmans. Steven Spielberg won the Best Director, Motion Picture award for the movie.

This Zacks Rank #5 (Strong Sell) company’s other movie, The Banshees of Inisherin won the category of Best Picture, Musical or Comedy competing against the likes of Glass Onion: A Knives Out Mystery from Netflix NFLX and Babylon from Paramount Pictures, a subsidiary of Paramount Global.

The Walt Disney Company Revenue (TTM)

The Walt Disney Company Revenue (TTM)
The Walt Disney Company Revenue (TTM)

The Walt Disney Company revenue-ttm | The Walt Disney Company Quote

 

The Zacks Consensus Estimate for Disney’s Media and Entertainment Distribution revenues is currently pegged at $15.33 billion.

Click here to know how Disney’s overall first-quarter fiscal 2023 results are likely to be.

Disney+ Subscriber Base Likely to Have Stalled

Disney+ has emerged as a key growth driver for Disney, primarily driven by its solid content portfolio.

Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix, Apple TV+, Amazon Prime Video, HBO Max, Peacock, Paramount+ and TikTok.

The Zacks Consensus Estimate for paid subscribers for Disney+ is currently pegged at 157 million, indicating 21% growth from the figure reported in the year-ago quarter but down 4.3% sequentially.

Netflix reported better-than-expected fourth-quarter fiscal 2022 subscriber numbers. The streaming giant gained 7.66 million paid subscribers globally, higher than its estimate of gaining 4.5 million users.

Comcast’s Peacock ended 2022 with more than 20 million paying subscribers. Moreover, Peacock added more than 5 million paid subscribers in the fourth quarter.

Nevertheless, Disney is expected to have benefited from a strong content portfolio.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Comcast Corporation (CMCSA) : Free Stock Analysis Report

Netflix, Inc. (NFLX) : Free Stock Analysis Report

The Walt Disney Company (DIS) : Free Stock Analysis Report

Paramount Global (PARA) : Free Stock Analysis Report

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