Earnings Preview: Walt Disney primed for fresh 2025 highs?

• Walt Disney shares ↑ 6% YTD

• Trading 4% away from 2025 high 

• Entertainment, experience segment & forward guidance in focus 

• Shares could move 5.6% ↑ or ↓ post earnings

• Technical levels - $124.50 & $115.00

One of the world’s largest and most well-known entertainment companies is slated to report third-quarter fiscal results on Wednesday.

Walt Disney shares are up 6% year-to-date and trading roughly 4% away from its 2025 high at $124.52. 

Despite the slow start earlier this year, its shares have been gaining momentum, ending Q2 over 25% higher. These gains could be based on the encouraging fiscal second-quarter results, boosted by direct-to-consumer (DTC) streaming and theme park operations. 

Prices could rise or fall depending on how investors react to the latest earnings report.

When will earnings be published?

Disney reports its fiscal third-quarter earnings on Wednesday, 6th August before US markets open.

Market expectations

The entertainment company is expected to post earnings per share of $1.46 compared to $1.39 a year ago – marking a 5% jump. 

Quarterly revenues are seen rising to $23.7 billion from $22.2 billion in the prior year – equating to a 2% increase.

What to watch out for

Disney beat analysts’ revenue expectations last quarter, reporting revenues of $23.62 billion, up 7% year on year. Analysts are expecting the company’s streaming division to show further profitability with the theme parks and cruises, also generating revenue.

• Streaming business: This segment is expected to perform well after Disney+, Hulu and ESPN+ were bundled into a single package to capture more consumers. Investors will also be looking for fresh updates on the new ESPN sports streaming service set to debut in September 2025. 

   

• Experience segment: Disney has been investing heavily in this segment with plans to launch a new theme park in Abu Dhabi in the 2030s. The experience segment is forecast to make around $8.9 billion in the fiscal third quarter, representing a 3.6% increase.

What does this mean for FXTM’s US30

FXTM’s US30 tracks the underlying Dow Jones Industrial Index. 

And Walt Disney makes up just 1.6% of the index weight. 

Prices have been in a range in recent weeks, trading less than 2% away from the all-time high.

Key levels of interest can be found at 45000, 44200 and 43500.

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How will Disney react to earnings?

Markets are forecasting a 5.6% move, either up or down, for Disney stocks post earnings on Wednesday.

Technical picture 

Disney shares remain in a range on the daily charts with support $115 and resistance at $124.50.

• BULLISH: Should Disney’s past quarterly results and forward guidance boost confidence in its business outlook, this could push prices higher. 

Using Tuesday’s closing price of $118.58 as a reference point, a 5.6% increase would see this stock hit $125.22 – a fresh 2025 high.

BEARISH: Should Disney announce disappointing results, prices may tumble. 

A 5.6% decline from $118.58 may drag prices to $111.93.

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