Disney earnings: CEO succession, ABC turmoil and streaming key for investors

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Attention will be on Disney later Tuesday morning as the entertainment giant releases its highly anticipated second-quarter earnings to investors.

The Bob Iger-led company has said it plans to publish the results before the stock market opens in the morning. That marks a change from the after-the-bell reporting that the entertainment giant has typically done in recent quarters, including the prior one. Here are some topics that have been front-of-mind for many Disney investors in the lead-up to the company’s earnings.

In January, while still in the midst of its proxy battle with Nelson Peltz and the Trian Group, Disney said it "remains committed to and actively engaged in the high-priority work of succession planning." The company has a succession planning committee dedicated to that. ABC News experienced a leadership shake-up over the weekend with Kim Godwin’s retirement. Debra O’Connell, recently-promoted Disney Entertainment News Group and Networks President, has stepped in to guide the unit.

In its research note, Wells Fargo estimated Disney will see its Disney+ Core subscriber count go up by 4 million net additions in both fiscal 2025 and 2026, higher than it previously predicted due to the initiative. "Additionally, we’ve analyzed churn benefits from the Hulu tile w/in Disney+ and think this could add nearly $400mm in add’l OI," the note said.

 

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