As The Walt Disney Co. gets closer to announcing earnings on Wednesday and holding Bob Iger’s first call with analysts since his return to the company, predictions about what will transpire are heating up. Evercore ISI media analyst Vijay Jayant is expecting Disney to beat consensus expectations with its first-quarter numbers. More importantly, Jayant is predicting Iger will come through on the cost cuts Wall Street and investors are looking for.
With 1Q revenue dragged down across divisions — from the closed theme parks units and film segments, affected by closed cinemas, and TV networks, where advertising started tanking amid the virus crisis despite higher news and other ratings — it is no wonder that management teams have in recent weeks unveiled furloughs, salary cuts and other measures to reduce their cost base.
