Disney Q3 results on deck: What to expect

Walt Disney (NYSE:DIS) is set to post third quarter results on Wednesday, before markets open.

Wall Street expects the media and entertainment conglomerate to post EPS of $1.44 on revenue of $23.76 billion, implying a rise of 2.6% during the quarter.

Earlier in May, California-based Disney guided strongly for the full year, after adding more subscribers than expected on its streaming platforms for the second quarter.

Over the last two years, Disney has beaten EPS estimates 100% of the time and has beaten revenue estimates 50% of the time.

Analysts are broadly bullish on the stock, with Seeking Alpha analysts, Wall Street and Seeking Alpha’s Quant rating considering it a Buy and above.

A recent Seeking Alpha analysis by Envision Research said it sees several EPS drivers for the company in FQ3 and FY 2025, including strong gains in its Entertainment and Experiences divisions and streaming business.

“Capital discipline and restructuring are improving margins, and recent box office successes could further support near-term profit growth,” it said.

Seeking Alpha analyst Luca Socci said the main “attention-grabbing metrics will be linked to Disney’s operational momentum” during the Q3 earnings, given the pivot to streaming has been a “bloodbath for Disney’s free cash flow, causing turbulent years of stock underperformance, leadership changes, unclear subscriber churn rates, and margin pressures.”

Over the last three months, EPS estimates have seen 14 upward revisions, compared to three downward revisions, while revenue estimates have been revised upwards nine times versus six downward moves.

The stock has risen over 7% so far this year, almost in line with the broader S&P 500 Index.