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Will Media, Entertainment Growth Aid Disney (DIS) Q4 Earnings?

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The Walt Disney's (DIS - Free Report) fourth-quarter fiscal 2021 results, set to be reported on Nov 10, are expected to have benefited from the success of Shang-Chi and the Legend of the Ten Rings.

Growing popularity of Disney+ is also noteworthy. However, per Disney’s forecast, subscriber addition might have slowed down in the to-be-reported quarter.

The Zacks Consensus Estimate for Media and Entertainment Distribution revenues stands at $13.43 billion, suggesting growth of 86.3% from the figure reported in the previous quarter.

Moreover, revival in Parks, Experiences and Products businesses holds promise. The Zacks Consensus Estimate for Parks, Experiences & Consumer Products revenues is currently pegged at $5.46 billion, indicating growth of 111.6% year over year.
 

The Walt Disney Company Revenue (Quarterly YoY Growth)

The Walt Disney Company Revenue (Quarterly YoY Growth)

The Walt Disney Company revenue-quarterly-yoy-growth | The Walt Disney Company Quote

 

The consensus mark for Parks, Experiences & Consumer Products operating income is pegged at $931 million against the year-ago quarter’s reported operating loss of $639 million.

Click here to know how Disney’s overall fourth-quarter fiscal 2021 results are likely to be.

Media and Entertainment Revenues to Grow

DTC revenues are expected to have benefited from robust adoption of Disney+. The Zacks Consensus Estimate for DTC revenues stands at $4.62 billion, suggesting growth of 8.5% from the figure reported in the previous quarter.

Content Sales/Licensing segment revenues are likely to have benefited from the success of Shang-Chi and the Legend of the Ten Rings. The Zacks Consensus Estimate for this segment’s revenues stands at $2.11 billion, suggesting growth of 25.6% from the figure reported in the previous quarter.

The Zacks Consensus Estimate for number of paid subscribers for Disney+, ESPN+ and Hulu is pegged at 123.4 million, 16.2 million and 44.4 million, respectively.

Moreover, improvement in ad demand and spending is expected to have benefited Disney-division ESPN’s ad-sales business, much similar to what cable giant Comcast (CMCSA - Free Report) , Alphabet (GOOGL - Free Report) division Google and Twitter experienced in the July-September quarter.

The consensus estimates for advertising revenues – broadcasting and advertising revenues - cable is currently pegged at $733 million and $978 million, respectively.

Disney currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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