As The Walt Disney Company (NYSE:DIS) reports its latest earnings later today investors will want something to kickstart share price momentum, with hopes pinned on some of the world's most iconic and intergenerational intellectual property - The Beatles, Marvel and Star Wars.
Theme park attendance before, during and after the Omicron wave will also be a closely watched stat ahead of the peak Spring and Summer periods.
Disney, which has seen a 9.09% contraction in its share price in the year to date, will hope the new shows boosted subscribers to the Disney+ streaming platform, and that rejuvenated mobility has breathed life back into its theme parks when it announces the Q1 2022 results.
During its latest fiscal first quarter, Disney released Beatles documentary Get Back, the Marvel Cinematic Universe’s Hawkeye series and the first episode in the latest Star Wars series The Book of Boba Fett.
Positive streaming results for the company would buck a bearish outlook towards streaming triggered by Netflix, which saw the leading streamer’s subscriber growth slow markedly following accelerated growth through Covid-19 restrictions.
Netflix added 3.5 million fewer subscribers in its first quarter of 2022 against the 2021 rate, while Disney added 2.1 million subscribers in Q4 2021 in signs of slowing growth, with monthly revenue per paid customer down 9% on the year prior.
Maintaining investor optimism rests on Disney keeping its forecasted 230 million to 260 million Disney+ subscribers by 2024 within reach, with current subscriber figures at 118.1 million as of 2 October 2021.
The company’s streaming subsidiaries including ESPN+ and Hulu will add a long tail to streaming figures.
While the easing of covid restriction may harm the company’s streaming arm, it should have the opposite effect on the company’s parks, experiences and products segment, with analysts expecting pent-up demand to tie in with last year’s low base to deliver strong revenue growth.
Park revenues nearly doubled to US$5.45bn in Q4 2021, allowing the company to make operating income of $640mln.
Based on IBES data from Refinitiv, analysts estimate Disney will report earnings per share US$0.63, with predicted revenues of US$20.91bn.