Disney (DIS) is a household name thanks to its film and TV production, theme parks and resorts, and its cable and streaming arm. However, its giant size and global reach have not been enough to protect Disney from bumps in the road. 

DIS stock is up just under 2% in the year to date and just under 10% over the past 52 weeks. Most encouragingly, shares have gained nearly 23% in just the past month. 

Disney Prepares for Lay-Off

Despite the relatively positive price action, Disney is bracing for turbulence. 

The entertainment giant is preparing to lay off “several hundred” employees globally as per a Deadline report published on Monday, June 2. The move will focus on the company’s Entertainment segment, including film and television publicity, development, and casting. Additionally, Disney’s corporate financial operations are also reportedly bracing for impact.

The move follows Disney’s recent round of layoffs in March where the company cut nearly 200 employees, or 6% of its total workforce, at the ABC News Group and Disney Entertainment Networks.

Disney Reported Solid Earnings

Disney reported its fiscal second-quarter results on May 7, posting a profit of $3.28 billion. This figure can be translated to $1.45 per adjusted share, surpassing analysts' $1.18 per-share estimate. The company generated $23.62 billion in revenue in the quarter, again beating Wall Street’s $23.14 billion estimate.

Disney had previously anticipated a decline in Disney+ subscribers in the quarter but posted an increase of 1.4 million, taking its total to 126 million monthly subscribers. Wall Street had bet on 123.35 million subscribers. Revenue from the Entertainment segment rose 9% to $10.68 billion, while its Experiences segment saw revenue increase 6% to $8.89 billion.

For FY25, Disney has raised its guidance with earnings now expected at $5.75 per share while operating cash flow is expected at $17 billion, up from the previous $15 billion guidance. 

Analyst Takes on Disney Stock 

Analysts have a positive take on the stock with a “Strong Buy” consensus rating and a mean price target of $125.92, reflecting upside potential of roughly 10% from the current market price. The stock is covered by 29 analysts and has received 21 “Strong Buy” ratings, two “Moderate Buy” ratings, and six “Hold” ratings.