Disney 4Q Looks to Be Continuation of Recent Trends

Disney’s performance in 4Q appears to be a continuation of recent trends, say analysts at BofA Securities in a research note. Advertising is improving sequentially but not necessarily rebounding, while theme park trends overall remain healthy. The entertainment giant’s short dispute with Charter Communications should have a minimal impact. “FY24 outlook is clearly more positive as it will reflect solid underlying momentum at parks and continued improvement in losses at DTC, ” say the analysts. CEO Bob Iger has made a lot of progress in his first year back, but more is needed in the second year. The analysts believe the near-term strategic priorities include NBA contract renewal, bringing in a strategic partner or partners for ESPN, settling streaming service Hulu’s ownership and any potential asset sales or restructuring.

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