Disney Stock Rises Ahead Of Earnings: What To Expect From Mouse House’s Q3 Print

Walt Disney Co. (DIS) stock rose over 2.5% in Wednesday’s early premarket session as traders reacted to a late-Tuesday announcement concerning ESPN’s proposed acquisition of NFL Network and looked ahead to the company’s earnings report for the third quarter of the fiscal year 2025.

For the year-to-date period, Disney stock is up 6.71%.

According to the Fiscal.ai-compiled consensus estimates, the Burkbank, California-based company is expected to report adjusted earnings per share (EPS) of $1.44 and revenue of $23.75 billion. This marks a modest increase from the year-ago numbers of $1.39 and $23.16 billion.

The focus will be on the company’s direct-to-consumer (DTC) segment, which fetched over 57% of the total revenue in the previous quarter. However, the year-over-year (YoY) growth was at an anemic 8% due to competitive pressure.

In May, when Disney released its second-quarter results, it said it expects a modest sequential increase in Disney+ subscribers. The company reported  187 million Disney+ and Hulu subscriptions in the third quarter, with the former accounting for 126 million.

The company predicted full-year adjusted EPS to be $5.75, with double-digit segment operating income growth for the entertainment business, and 18% segment operating income growth for Sports, as well as 6%-8% growth for the Eperiences business.

On Stocktwits, retail sentiment toward Disney stock was ‘extremely bullish’ (90/100), with the positivity improving from the previous day. The 24-hour message volume on the Disney stream also spurted ahead of the results due before the market opens.

A bullish user said they expect the stock to rise to $130 following the earnings report.

Some users discussed the timing of the ESPN-NFL deal announcement, while others looked forward to approval for Disney’s pending acquisition of fuboTV (FUBO).

Earlier this week, Morgan Stanley analyst Benjamin Swinburne raised the price target for Disney stock to $140 from $120.

“If the macro backdrop remains healthy, we see Disney generating healthy double-digit adj. EPS growth in the years ahead,” the analyst said. “Thanks to growth in its Experiences and Streaming businesses, it is poised to have rebuilt its pre-pandemic earnings base and hit new heights by FY27.”

The Koyfin-compiled consensus analysts’ price target for the Disney stock is $131.56, implying over 11% upside potential.

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