Walt Disney Company (NYSE:DIS) is gearing up to release its fourth-quarter fiscal 2023 earnings on November 8, and investors are keen to see what’s in store.
Over the past 30 days, the Consensus Estimate for earnings has experienced a 9.3% dip, settling at 68 cents per share. However, this still represents an impressive 126.67% increase compared to the previous year.
The consensus projection for revenues stands at $21.32 billion, indicating a growth of 5.79% when compared to the figures reported in the same quarter last year.
It’s worth noting that Disney has outperformed the Consensus Estimate in three out of the last four quarters, with just one instance of falling short. The average surprise has been a respectable 3%.
Now, let’s delve into the key factors shaping the backdrop for this upcoming announcement.
Disney’s Q4 fiscal 2023 results are anticipated to reveal a decline in Disney+ subscriber numbers. As of July 1, 2023, Disney+ had 146.1 million paid subscribers, a drop from the 157.8 million reported on April 1, 2023. This decline is likely attributable to intensified competition from major streaming services such as Amazon Prime Video and Netflix, as well as the increasing popularity of platforms like Apple, Peacock, and HBO Max. The tough competition is expected to have had a negative impact on Disney+’s growth in the upcoming quarter.
Our model estimates that Disney+ will have approximately 145.1 million paid subscribers, reflecting an 11.6% decrease compared to the previous year.
Furthermore, Disney is expected to have faced challenges with lower advertising revenues during this reporting period. Over the nine months leading up to July 1, 2023, revenues decreased by 13% compared to the same period in the prior year, primarily due to a reduction in ad impressions, with Hulu and Disney+ being the primary contributors to this decline.
In summary, Disney’s upcoming earnings report will be closely scrutinized to assess how it has navigated the evolving streaming landscape and coped with the changes in its subscriber base and advertising revenues.
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Author Stephanie Bédard-Châteauneuf 
