Walt Disney (NYSE: DIS) has had a strong year so far, blowing away earnings estimates over the past two quarters. Will that outperformance continue when Disney reports its fiscal third quarter earnings on Wednesday, August 6, before the market opens?

The media and entertainment giant is expected to post quarterly earnings of $1.45 per share in the third quarter ended June 30, according to consensus estimates. That would be up about 5.8% from the same quarter a year ago.

In the last quarter, Disney also posted earnings of $1.45 per share, which beat estimates by 20%. In Q4 of 2024 it generated an EPS of $1.76, which topped estimates by nearly 23%.

Further, analysts expect Disney to post revenue of $23.76 billion in Q3, which would be about 2.6% compared to the same quarter a year ago.

Disney stock has had a solid year, rising about 8% year-to-date and 28% over the past 12 months.

The company got a boost after it reported strong results in the March quarter, with earnings rising 20% and revenue jumping 7% year-over-year. The theme parks were again the leading revenue driver, as they have been in recent years as Disney has tried to adapt to the changing media landscape.

But the March quarter was more notable for the strength of its struggling streaming business. The streaming business saw revenue grow 8% in the quarter to $6.1 billion while streaming operating income soared 615% to $336 million. The number of both Disney+ and Hulu subscribers increased, as did the average revenue per subscriber for both.

Investors will be closely watching the streaming numbers to see if that was a blip or the start of positive trend.

New ESPN sports streaming service to debut soon

Image: ESPN

Investors will also be tuned in for more details about ESPN’s new direct-to-consumer sports streaming service that is launching in September, in time for the start of the NFL season.

The streaming service, which will provide access to all of ESPN’s networks and events, will offer two packages – an unlimited package for $29.99 per month and a select package for $11.99 per month. The basic ESPN channel will still be available over cable and streaming platforms, officials said. 

“Our straightforward approach to name and pricing will help fans cut through the clutter and provide them compelling options to access all our content within the enhanced ESPN App,” ESPN Chairman Jimmy Pitaro said back in May. “It will be the ultimate sports destination for personalized experiences and features, and, on top of that, fans will be able to choose to bundle ESPN with the industry-leading Disney+ and Hulu streaming services.”

On Tuesday, analysts at JP Morgan boosted Disney’s price target to $138 per share, from $130. That would be a 15% increase over the current $120 per share price. Analyst David Karnovsky is anticipating earnings increases for Disney’s theme parks and for DTC streaming, according to the Fly.

Within the past couple of weeks, UBS raised its target for Disney stock to $138 per share, while Moffett Nathanson and Barclays each bumped their targets up to $140 per share.

It is worth noting that the company has also had some box office hits in the past quarter that could lift revenue past expectations. The big winner has been Lilo and Stitch, which surpassed $1 billion in international box office revenue and is the second-best performing film of the year.

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