After years of collaboration, ESPN and the National Football League are deepening their relationship in a deal that could reshape how American football is watched, streamed and played online. The Walt Disney Co (NYSE:DIS, ETR:WDP) owned sports network is set to acquire NFL Network, along with a handful of key media assets, in exchange for a 10% stake in ESPN, according to a joint announcement after hours.
Disney reports fiscal third-quarter earnings before the market opens on Wednesday. Wall Street analysts surveyed by LSEG expect earnings per share of $1.47 and revenue of $23.73 billion.
CNBC's Julia Boorstin reports on what to watch ahead of Disney's earnings tomorrow.
Here is how Walt Disney (DIS) and OneSpaWorld (OSW) have performed compared to their sector so far this year.
The Walt Disney Company is a short-term buy as a turnaround play, driven by theme park and cruise line expansion and improving fundamentals. Despite recent struggles, Disney's brand strength and investments in intellectual property position it for potential near-term outperformance. Margins and ROIC remain below pre-pandemic levels, but trends are improving; continued cost control and revenue growth are crucial.
Disney's Q2 earnings will be solid, but the focus is on its movie business recovery and the upcoming ESPN streaming launch. Marvel's recent films continue to underperform, with only modest hope for Fantastic Four; Avatar and Zootopia 2 remain bright spots. ESPN's streaming launch faces profitability challenges, and bundling with Disney+/Hulu may dilute revenue rather than boost it.
DIS presents a compelling buy opportunity ahead of fiscal Q3 earnings. Streaming profits, Abu Dhabi expansion, and robust momentum create very exceptional upside.
The stakes are especially high for the studio, caught between how to use artificial intelligence in the filmmaking process and how to protect its famed characters against it.
Disney remains a distant third in streaming behind YouTube and Netflix, facing fierce competition and retention challenges. Parks and IP licensing continue to be Disney's strongest assets, driving robust revenue and high attendance despite weaker international travel. Streaming pivot has pressured free cash flow, but recent cost management and ad revenue gains show promise for improved profitability.
The Walt Disney Co. (DIS) is set to report its results for the third quarter of fiscal 2025 before the market opens Wednesday, with analysts expecting rising revenue and profits and resilient demand for its experiences segment.
I see strong odds for Disney to beat FQ3 earnings estimates, potentially marking an inflection point for the company. Key catalysts include Entertainment and Experiences and profitability in its streaming assets. Capital discipline and restructuring are improving margins, and recent box office successes could further support near-term profit growth.
Walt Disney (DIS) concluded the recent trading session at $116.59, signifying a -2.12% move from its prior day's close.