- Disney’s Full-Year Forecast: Disney raised its full-year profit forecast with adjusted EPS now expected to be $5.85, exceeding previous forecasts and estimates.
- Direct-to-Consumer Growth: The company projects $1.3 billion in direct-to-consumer operating income, higher than the estimated $1.22 billion.
- Operating Income Expectations: Entertainment operating income is expected to grow in double digits, aligned with a +24.2% estimate, while experiences operating income is forecasted to grow by 8%.
- Sports Income Growth: Disney expects an 18% increase in sports operating income, surpassing the 17.4% forecasted growth.
- Cruise Line and India JV: Pre-opening expenses for the cruise line are projected at $185 million. An equity loss of about $200 million from the India JV due to purchase accounting amortization is anticipated.
- Future Subscriber Growth: Modest growth is forecasted for Disney+ subscribers in the fourth quarter, with a notable increase expected from Hulu due to an expanded deal with Charter.
- Third Quarter Highlights: Disney reported an adjusted EPS of $1.61, which surpassed the estimate of $1.46. Revenue reached $23.65 billion, although slightly below the $23.68 billion forecast.
- Segment Performance: Total segment operating income rose by 8.3% year-over-year to $4.58 billion, surpassing the $4.47 billion estimate.
- Entertainment and Sports Revenue: Entertainment revenue saw a modest increase of 1.2% while sports revenue declined by 5.5% year-over-year.
- Subscriber Metrics: Disney+ reported 127.8 million total subscribers, with growth driven mainly by international markets. Hulu saw a slight subscriber increase to 55.5 million.
- Average Revenue Per User (ARPU): Disney+ ARPU increased to $7.86, exceeding estimates, while Hulu’s SVOD only ARPU slightly underperformed at $12.40.
- CEO’s Comments: Bob Iger emphasized the progress in Disney’s streaming strategy, including the upcoming ESPN direct-to-consumer service launch and further global expansion in parks and experiences.
The Walt Disney Co on Smartkarma
Analyst coverage of The Walt Disney Co on Smartkarma has been buzzing with positivity. Baptista Research, a prominent provider on the platform, recently published two research reports highlighting Disney’s promising future. In one report titled Disney’s $875 Million Streaming Comeback and UAE Power Move Could Change Everything!, the analysts expressed bullish sentiment following Disney’s second-quarter 2025 earnings report. The stock soared by 11% to over $102, fueled not only by robust financial performance but also by the announcement of a new theme park in Abu Dhabi, marking Disney’s seventh global venture in collaboration with the Miral Group.
In another report titled Disney: A $293M Streaming Comeback and the Big ESPN Gamble—Will It Pay Off?, Baptista Research highlighted Disney’s strategic shift towards streaming amid industry challenges. The report applauded Disney’s impressive financial results, with revenue climbing 5% to $24.7 billion and net income surging 34% to $2.6 billion. Particularly noteworthy was the $293 million profit generated by Disney’s streaming division, showcasing significant improvement compared to the previous year. Overall, Smartkarma analysts seem optimistic about Disney’s trajectory in the evolving entertainment landscape.
A look at The Walt Disney Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, The Walt Disney Co shows a positive long-term outlook. With strong scores in Growth and Momentum, the company is positioned well for future expansion and market performance. The Growth score of 5 reflects the company’s potential for increasing revenue and expanding its business operations. Additionally, the Momentum score of 5 indicates that the company is experiencing positive market momentum, which could lead to continued growth.
Despite not scoring as high in Value and Dividend, with scores of 3 and 2 respectively, The Walt Disney Co still maintains a solid overall outlook. The company’s operations in media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media showcase its diverse revenue streams and potential for continued success in the entertainment industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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