Walt Disney (DIS) will report its financial results for the second quarter of Fiscal 2025 on May 7. The stock has declined about 17% year-to-date due to weak box office returns, concerns over streaming growth, potential tariffs on international productions, and broader economic uncertainty affecting theme park and ad revenues. Wall Street analysts anticipate that the company will report earnings of $1.19 per share, down 2% year-over-year.
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However, revenues are expected to rise by 5% from the same quarter last year, reaching $23.09 billion, according to data from the TipRanks Forecast page. Notably, Disney has an encouraging earnings surprise history. The company missed earnings estimates just once out of the previous nine quarters.
Analysts’ Views on Disney Ahead of Q2 Results
Ahead of Disney’s Q2 results, Loop Capital analyst Alan Gould lowered his price target on the stock to $120 from $130, while keeping a Buy rating. The analyst expects Disney’s Parks and Experiences segment estimates to come in below consensus and even slightly under management’s low-end guidance. According to Main Street Data, Disney’s Parks and Experiences segment reported $9.4 billion in revenue for the quarter ending December 28, 2024, up 3% year-over-year.
In addition, Gould reduced his March quarter film revenue forecast due to “disappointing results of Snow White.” That said, it remains upbeat on Disney’s content outlook, pointing to a strong 15-month lineup that includes a new Avatar and an Avengers film—both seen as major box office drivers.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.09% move in either direction.
Is Disney a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 14 unanimous Buys assigned in the past three months, as indicated by the graphic below. The average DIS stock price target is $125.57, implying upside potential of 36.33%.
