Disney's Parks and Linear Networks Face Headwinds, Analyst Lowers Expectations For Q4
Portfolio Pulse from Anusuya Lahiri
Needham analyst Laura Martin has reiterated a Hold rating on Walt Disney Co (NYSE:DIS) and lowered her Q4 2023 estimates for the company. The revision is due to lower expectations for Content Sales, Parks and Experiences, and Linear Networks, partially offset by higher revenue in the DTC segment. Martin's new estimates include a 4Q revenue of $21.4 billion, operating income of $2.8 billion, and adjusted EPS of $0.76. The analyst also projects FY23 revenue of $89.09 billion, FY24 revenue of $93.52 billion, and FY25 revenue of $97.76 billion.
October 09, 2023 | 6:19 pm
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Needham analyst Laura Martin has lowered her Q4 2023 estimates for Walt Disney Co due to lower expectations for several segments. However, higher revenue is expected in the DTC segment.
The analyst's lowered estimates for Disney's Q4 2023 earnings could potentially lead to a negative short-term impact on the company's stock. This is due to the fact that lower earnings estimates often lead to a decrease in investor confidence, which can result in a drop in the stock price. However, the higher expected revenue in the DTC segment could offset some of this impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100