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The Walt Disney Company (DIS - Free Report) is set to report its third-quarter fiscal 2023 results on Aug. 9.

The Zacks Consensus Estimate for earnings has moved down by 3% to 99 cents per share over the past 30 days, indicating a decrease of 9.17% year over year.

The consensus mark for revenues is pegged at $22.44 billion, suggesting growth of 4.34% from the year-ago quarter’s reported figure.

Notably, Disney’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining quarter, the average surprise being 5.98%.
 

The Walt Disney Company Price and EPS Surprise

The Walt Disney Company price-eps-surprise | The Walt Disney Company Quote

Let’s see how things have shaped this announcement.
 

Factors to Consider

Disney’s third-quarter fiscal 2023 results are expected to reflect declining Disney+ subscriber growth. Disney+, as of Apr 1, 2023, had 157.8 million paid subscribers compared with 161.8 million as of Dec 31, 2022.

Stiff competition from the likes of Amazon prime video and Netflix, as well as the growing prominence of services from Apple, Peacock, and HBO Max, is expected to have hurt Disney+’s growth in the to-be-reported quarter.

Our model estimate for the number of paid subscribers of Disney+ is currently pegged at 149.8 million, suggesting an 8.8% year-over-year decline.

Parks, Experiences, and Products businesses are expected to have benefited from strong occupancy.

Our model estimate for Parks, Experiences & Consumer Products revenues is currently pegged at $8.06 billion, indicating growth of 13.5% from the figure reported in the year-ago quarter.
 

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Disney has an Earnings ESP of -9.14% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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