Earnings preview: Is Disney+ in for a wake-up call like Netflix?

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Analysts expect Disney to report more than 5 million net new subscribers Wednesday, but at least one believes the number will be much lower.

Disney DIS, -3.00% has ferociously eaten into rival Netflix Inc.’s NFLX, -4.35% subscriber base since launching Disney+ in November 2019, climbing to 129.8 million subscribers. That is more than half of Netflix’s total of 219.6 million, which declined by 200,000 subscribers during the first quarter, sending Netflix shares down hard and creating questions about the environment for streaming services.

“Netflix established the market, yes, but it was Disney who came late to the party and is now the party,” Biggio told MarketWatch. “In an industry increasingly reliant on content and [intellectual property] when consumers are more discerning with their dollars, Disney clearly has the upper hand.” Streaming is but one piece of a media empire whose portfolio includes amusement parks, hotels, cruise lines and consumer products.

What to expect Earnings: Analysts surveyed by FactSet on average expect Disney to report second-quarter earnings of $1.19 a share, up from 50 cents a share a year ago. At the end of January, analysts had predicted $1.25 a share. Stock movement: As of Monday’s trading close, Disney’s stock has sunk 31% so far this year, while the S&P 500 index SPX, -3.20% is off 16%. Shares of Disney are down 27% since the company last announced quarterly results.

 

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Cancelled my subscription . Kids and family aren’t supporting $Dis

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