Over the past few months, Disney has been addressing concerns about its streaming and share price. The company has implemented measures to combat password sharing, similar to Netflix, and has increased its cost-cutting efforts by $2 billion, aiming for a total of $7.5 billion. Additionally, it plans to invest approximately $60 billion in its already successful parks business. Disney stock has seen a nearly 9% increase this year. According to LSEG (formerly known as Refinitiv), analysts are expecting the following from Disney’s fiscal first-quarter report:Earnings per share: 99 centsRevenue: $23.64 billionInvestor activist Nelson Peltz halted a previous proxy battle against Disney a year ago, but has resumed it recently, seeking changes to the board and aiming to secure a seat for himself and former Disney Chief Financial Officer Jay Rasulo. Peltz has pointed to the company’s stock decline, lowered earnings estimates, and disappointing studio content as reasons for the board shake-up.Disney CEO Bob Iger has publicly acknowledged the company’s struggles with theatrical releases and committed to focusing less on sequels and more on original, high-quality films. However, the production timeline for films is typically around 18 months, meaning changes in Disney’s box office performance may not be evident until 2025 or 2026. At that time, Disney is expected to release four major blockbusters: an Avatar film, two Star Wars features, and an Avengers team-up movie.Another point of interest for investors is that this is the second quarter in which Disney will be utilizing its new financial reporting structure, grouping the company into three divisions: entertainment, sports, and experiences. The entertainment segment encompasses all of Disney’s streaming and media operations, while sports includes ESPN and experiences covers the company’s theme parks, hotels, cruise line, and merchandise efforts.Tune in to CNBC’s “Closing Bell: Overtime” at 4:05 p.m. ET for an interview with Disney CEO Bob Iger conducted by Julia Boorstin.
