Analysts at RBC Capital provided their outlook on The Walt Disney Company (NASDAQ:DIS) ahead of the company’s Q1 results, scheduled to be released tomorrow.
The analysts expect results will take a backseat to management’s updated strategic and operational visions following the recent leadership change and ongoing proxy battle with an activist. Analysts believe that since Bob Iger’s re-appointment as CEO was only a few months ago, the details of the new plan are still being developed and it may take longer to communicate it clearly to investors.
That said, the analysts still see scope for the bull thesis to be reinvigorated with constructive detail around the path to DTC profitability (e.g., Disney+ meeting or beating its target of achieving profitability in 2024), company-wide cost transformation initiatives (mitigating topline pressures, particularly at Linear Networks, and driving a re-acceleration in operating income growth after 2023), and efforts to improve the guest experience at the Parks (providing more value and flexibility could sustain attendance trends and preserve the brand).