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Walt Disney will announce earnings soon. What to expect.

Walt Disney expects its streaming division to become profitable by the final quarter of its fiscal year, so investors will be on the lookout for signs of progress when the company reports its latest results.

Earnings and revenue will also be in focus, as well as what management has to say about the future after winning a proxy fight with activist investor Nelson Peltz’s hedge fund Trian Partners last month. Historically, the company has released its results after the closing bell, but this time the report will be released before markets open.

Analysts expect that Disney will report earnings of $1.10 per share for the second quarter, i.e. three months to March. That would be down from the first quarter but up from the 93 cents earned a year ago, according to FactSet.

Wall Street forecast quarterly sales of $22.12 billion, also down from the first quarter but higher than the $21.82 billion achieved by Disney a year earlier.

Analysts are also calling for core subscribers to the Disney+ streaming service to rise to 117 million from 111.3 million in the first quarter. The company plans to start cracking down on password sharing this summer.

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Netflix
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one of the strongest players in the streaming industry, made a similar decision last year. It added more net new subscribers than expected last quarter, but management said it would stop reporting total subscriber numbers altogether in 2025.

In a Friday research report, Deutsche Bank analysts led by Bryan Kraft pointed to the importance of streaming for Disney. “While improving direct sales profitability through cost management and increasing average revenue per user is absolutely the focus, continuing to scale and increase margins over 5 years will also depend on subscriber growth,” the team wrote.

They raised their price target for the stock to $130 from $125 and maintained a Buy rating.

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Disney shares closed at $116.47 on Monday. This year the price has increased by 29%.

Write to Emily Dattilo at [email protected]