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Can Disney Grow its Subscriber Base in Q2?
Stock Analysis & Ideas

Can Disney Grow its Subscriber Base in Q2?

Walt Disney (DIS) is a media and entertainment corporation that develops and distributes television and film content. It owns and runs theme parks, resorts, cruise ships, and streaming services.

Despite the reopening of its amusement parks and the resumption of operations, the stock has yet to fully recover from the effects of the pandemic. In the last year, the stock has dropped by more than 38%.

On a more optimistic note, demand for Disney’s offerings appears to be strengthening as the year passes and things return to normal, as reflected by the company’s impressive subscriber growth during the first quarter.

At the end of the first quarter, Disney’s total subscriptions had reached 196.4 million. This included the addition of 11.8 million Disney+ subscribers in the first quarter. In addition, revenues from its Parks, Experiences, and Products increased to $7.2 billion.

The market will be focused on Disney’s streaming services and subscriber growth when it releases its fiscal second-quarter 2022 financial results on May 11.

Let’s take a look at how the company is expected to perform this quarter.

What Do Disney’s Website Visit Statistics Indicate?

We used TipRanks’ Website Traffic Tool to learn more about Walt Disney’s second-quarter performance, which may provide some insights before earnings are released.

For the second quarter, total estimated visits to Disney’s streaming services, mainly Disney+ and Hulu, appear to be promising. On a sequential basis, the total number of website visitors to both Disney’s streaming platforms increased by 16.6% to 1.01 billion worldwide.

However, total estimated visits to ESPN+ fell by 36.7% sequentially in Q2 to 692.9k.

Looking Ahead

Walt Disney is expected to report adjusted earnings of $1.19 per share in the second quarter, according to analysts. The Q2 EPS forecast indicates a 50.6% increase in earnings from the year-ago quarter.

Wall Street’s Take

Tigress Financial analyst Ivan Feinseth is upbeat about the company’s performance in 2022.

Feinseth says, “The post-pandemic recovery in travel and consumer spending combined with significant investments in new theme park attractions and upgrades and technology initiatives will continue to drive an ongoing acceleration in Business Performance trends.”

He further adds, “DIS will continue to drive increasing theme park attendance with ongoing park upgrades and introductions of new attractions.”

As a result, the five-start analyst maintained a Buy rating on Disney stock and a price target of $229 per share.

On TipRanks, Walt Disney stock commands a Strong Buy consensus rating based on 16 Buys and five Holds. As for price targets, the average DIS price target of $184.95 implies 64% upside potential from current levels.

Learn more about the Website Traffic tool in this video by YouTube sensation Tom Nash. 

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Read full Disclaimer & Disclosure

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