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Disney Poised for Third-Quarter Earnings Beat on Experiences, Entertainment Strength, UBS Says

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Disney Poised for Third-Quarter Earnings Beat on Experiences, Entertainment Strength, UBS Says

Walt Disney (DIS) is likely to post fiscal third-quarter earnings above Wall Street's estimates, buoyed by gains in its experiences business and subscription video-on-demand services, UBS Securities said Monday.

The brokerage projects the media and entertainment giant to log earnings of $1.91 a share for the quarter when it reports results Aug. 5. The Street is looking for $1.85, according to UBS.

"We expect (third-quarter) results to reflect accelerating EPS growth as (first-half) headwinds are lapped, supported by (high-single-digit) growth in experiences and (double-digit) growth in SVOD," UBS analysts, including John Hodulik, said in a note to clients. Sports earnings before interest and taxes are seen dropping by mid-teens amid higher sports rights costs, and as box office "remains soft," the analysts said.

The brokerage lowered its price target on the Disney stock to $133 from $138 with a buy rating.

The company's shares were down 1.1% in Monday afternoon trade, bringing its year-to-date losses to nearly 15%.

For Disney's experiences business, UBS projects revenue to rise 8.7% for the quarter, as upfront cruise costs and pre-opening costs for World of Frozen-themed land are lapped. Domestic attendance improved sequentially in the third quarter, while international visitation was "partially lapped," the analysts said.

UBS expects overall revenue in Disney's entertainment business to grow 8.7%, buoyed by the consolidation of live-sports streaming company Fubo. The company's subscription services include the Disney+, Hulu and Disney+ Hotstar streaming platforms.

Third-quarter SVOD revenue is expected to increase by 11%, compared with growth of 13% in the prior quarter, as foreign-exchange tailwinds fade and the company's pricing actions from last year continue to filter through, UBS said.

For fiscal 2026, the brokerage projects EPS of $6.90, compared with the Street's $6.83 views, amid "solid" performance in the experiences segment, improving operating income in the sports business and SVOD above 10%.

Price: $96.88, Change: $-0.79, Percent Change: -0.81%

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