Disney 3Q23 Earnings: Analyst Commentary

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With Walt Disney Co (NYSE:DIS) reporting its third-quarter earnings, below is a commentary from Jesse Cohen, senior analyst at Investing.com.

Disney’s Third Quarter Earnings

Disney delivered a shockingly weak quarter with a big miss in subscriber growth additions standing out the most. Looking ahead, I believe that Disney will have to cut prices from current levels in an effort to stimulate demand and defend its market share in an increasingly competitive industry.

The group’s Parks division put in a solid performance, although attendance trends are slowing as a result of price increases in key markets and a pullback in consumer discretionary spending.

At this point, we have to accept that Disney is a slow-growth story. The streaming space is certainly feeling the pinch of persistently high inflation which has forced consumers to make changes to their spending habits as disposable income shrinks.

With its stock only down slightly after hours, investors appear to be waiting to hear what Bob Iger has to say on the post earnings call regarding the company’s strategic plans before dumping the stock.

For more information and data on Disney — from global annual revenue and annual net income, to worldwide Disney+ subscribers, box office revenue, and everything in between — please see here.