Disney (NYSE:DIS) had a fairly weak quarter, particularly when it comes to its streaming and broadcast content. That’s not surprising, given that the WGA writer’s strike is now on day 66 with virtually no signs of relenting. Well, except for a recent picket canceled due to excessive heat. But Disney may have a comeback in the works in September. Disney’s quarter has not been a good one. High-profile flops like “Elemental” and “Indiana Jones and the Dial of Destiny” have left Disney on the back foot.
And this isn’t just a temporary slump, either; Disney’s underperforming content woes go back as far as 2022 with “Lightyear,” as well as the latest Marvel movie “Ant-Man and the Wasp: Quantumania,” and even beyond. That, in turn, left analysts like Wells Fargo’s Steven Cahill to pare back earnings per share forecasts both for the quarter and for the full year.
However, there are some brighter signs. Even with underperforming content, Disney films have pulled in a hefty $3.4 billion so far since January 1. That’s underperforming, sure, but there are corporations who would die to have a tenth of that revenue. And that’s just one division. Even skeptical analysts like Cahill know there are possibilities ahead. A September investor event could be a great opportunity for Disney to re-fire the magic and demonstrate plans to solve the softening cash flow troubles.
Analysts, so far, are willing to give Disney the benefit of the doubt. With 12 Buy ratings and five Holds, Disney stock stands as a Moderate Buy. Meanwhile, Disney stock also offers investors 37.02% upside potential thanks to its average price target of $121.47 per share.
