When Disney reports after the bell Wall Street will be looking for what the media giant can tell us about the strength of the American consumer.
Disney, unlike other media conglomerates, doesn't provide guidance, so analysts will be listening carefully in the earnings call for signs of a sustainable advertising recovery and for trends at the theme parks for an indication of the American consumer.
Wall Street's looking for earnings of 58 cents a share, up from 52 cents in the year-ago period. Revenue's expected to grow 9 percent over last year's quarter to $9.384 billion. Disney has consistently beat Wall Street estimates — we'll see if the company can manage another upside surprise.
Advertising revenues are expected to drive Disney's results higher, just as they've helped all the other media giants this quarter. JP Morgan's Imran Khan projects ad revenue at Disney's media networks will grow about 10 percent. That 'media networks' division, which includes ESPN and ABC, is Disney's largest and most profitable division, contributing over half of the company's expected to be higher, as they've been at all the media.