Disney Analyst Seeks Update On Outlook, Cost Cut, ESPN And Hulu Consolidation And More Ahead Of Its 2Q - Walt Disney (NYSE:DIS)

Truist analyst Matthew Thornton reiterated a Buy rating on Walt Disney Co DIS with a price target of $121. DIS will report 2Q results Wednesday after the close.
The analyst provided his 'Top-10 Focal Points.' He expects reaffirmation of the FY23 outlook for high single-digit growth in revenue and Special Olympics International partnership, low $30 billion content spend, $6.0 billion in capex, and a small dividend by year-end.
The analyst expects an update on the sizing or timing of the $4.5 billion incremental cost reduction, including ≥$1.5 billion non-content by FY24 and $3.0 billion content ex-sports starting FY24.
He sought updates on ESPN's new broken-out segment reporting, sports rights strategy, and ways to lean further into sports betting.
The analyst wanted to know whether Hulu was staying or going. An update on the general entertainment portfolio and content curation, including potential cost savings from consolidating Hulu and Disney+ (and ESPN+) apps or the opportunity for Hulu to shift to a hybrid network/platform similar to ESPN+.
For Disney+, updates on international AVOD, including timing, markets, and pricing.
For Parks, the impact of curbing ticketing restrictions (from the pandemic) at Walt Disney World, Florida parks.
The analyst still expects Networks Y/Y decline to be "significantly" less in the fiscal second half versus the fiscal second quarter.
He expects strong Disney Parks, Experiences, and Products and mixed Disney Media and Entertainment Distribution.
Price Action: DIS shares traded lower by 1.12% at $101.07 on the last check Wednesday.

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