As the Walt Disney Company (NYSE:DIS) reorganizes its business, it is shedding light on ESPN’s financials for the first time, revealing a decline in revenue over recent quarters. This insight comes as Disney seeks a strategic investor for ESPN – what was once a crown jewel of the company. Disney’s restructuring into three segments separates sports from entertainment, with ESPN included in the former.
In a filing with the SEC, Disney indicated that its sports segment generated more than $13 billion in revenue for the nine months ending July 1, with ESPN contributing $12.5 billion. In the third quarter, ESPN reported revenues of around $4.06 billion, down from $4.1 billion in the second quarter.
Disney intends to offer ESPN as a separate direct-to-consumer service outside of traditional bundles in the future. The company is expected to announce its Fiscal fourth-quarter earnings on November 8.
What is the Target Price for DIS Stock?
Analysts are cautiously optimistic about DIS stock, with a Moderate Buy consensus rating based on 18 Buys, five Holds, and one Sell. The average DIS price target of $106.67 implies an upside potential of around 27% at current levels.
