Disney's Q4 Results Forecast: Will Streaming Drive Growth?

In the United States, Disney is set to release its Q4 FY'24 financial results around November 14. Predictions indicate a revenue of approximately $22.5 billion, representing a 6% year-over-year growth, alongside earnings per share expected to increase from $0.82 to $1.11. Despite challenges with its Linear Networks segment, which saw a 7% revenue drop in Q3, advertising revenue from streaming is on the rise, showcasing a recovery. The company's theme park division experienced a mere 2% increase in revenue, with mixed performance noted in its experiences business overall. However, a strong showing from Disney Cruise Line could help offset these less favorable metrics. Disney's stock has underperformed compared to the broader market, witnessing declines over the past three years with a notable -44% return in 2022. Nonetheless, optimism surrounds the stock as analysts project significant earnings growth, nearly 30% year-over-year, supported by a restructuring plan aimed at reducing expenses by about $7.5 billion. Given the current market conditions, Disney's stock is valued at an estimated $116 per share, about 20% above its recent trading price. This suggests that there may still be investment opportunities within the company despite existing concerns related to its streaming and media operations.