Paypal and Disney earnings ahead, what to expect? 🧭

9:27 pm 7 February 2024

PayPal (PYPL.US)

PayPal (PYPL.US) is gearing up to report its Q4 earnings after market close, with a keen focus on guidance, profit margins, and cost-cutting measures under the leadership of new CEO Alex Chriss. Analysts have set the consensus EPS Estimate at $1.36, marking a 9.7% increase year-over-year, and the consensus Revenue Estimate at $7.87B, up 6.4% year-over-year. Despite facing competition from Apple Pay and buy now, pay later options, PayPal has made strategic moves including job cuts and introducing AI-driven features to boost user and merchant engagement. Chriss, who replaced Dan Schulmann in September, has emphasized the need to reduce PayPal's high cost base.

Expectations:

  • Adjusted EPS: $1.36 (+9.7% Y/Y)
  • Total Revenue: $7.87B (+6.4% Y/Y)

 

Today, PayPal is not experiencing significant changes ahead of its earnings. The company's shares are up 0.33% to $63.6. Source: xStation 5

 

Disney (DIS.US)

Disney (DIS.US) is the second closely watched company that is set to report its fiscal first-quarter earnings after market close. The company is expected to report a loss in subscribers due to recent price hikes, but streaming profitability remains a key focus, especially regarding cost-cutting measures implemented a year ago. Analysts anticipate total revenue of $23.80 billion and adjusted earnings per share of $1.01. Notably, this is the first earnings report for new CFO Hugh Johnston. Therefore, investors keenly await insights into his priorities for cost reduction and profitability. Despite recent layoffs at Pixar streaming profitability continues to lag.

Expectations:

  • Total Revenue: $23.80 billion
  • Adjusted EPS: $1.01
  • Disney+ Subscribers: Expected 174,000 quarterly net losses

Disney dips 0.55% before the earnings publication and remains below the key support level around $100. Source: xStation 5

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