Ahead of its upcoming quarterly report, consensus estimates compiled by major brokerages forecast The Walt Disney Company’s full-year earnings per share to decrease from $5.47 to approximately $5.30, marking a year-over-year decline of roughly 3.1%. This contraction is driven in part by a modest revenue dip in its media networks segment, where advertising sales are expected to soften by 2%, partially offset by a 5% increase in Disney+ subscription revenue as the streamer continues to add new subscribers in key international markets.

During the third quarter, SG Americas Securities LLC slashed its position in Disney by nearly 99.9%, selling over 2.6 million shares and retaining only 3,710 shares, while Vanguard Group increased its holding by 1.1%, adding 1.64 million shares to reach 157.5 million shares outstanding. State Street and Geode Capital also modestly boosted their stakes by 0.8% and 1.2%, respectively. These shifts leave institutional investors controlling approximately 65.7% of Disney’s outstanding shares, underscoring the importance of large-cap money managers’ sentiment toward the stock.

Disney recently declared a quarterly cash dividend of $0.75 per share, representing a payout ratio of 21.9% based on last reported earnings. This yield remains well above the sector average, offering income-seeking investors a stable return while the company navigates near-term headwinds in its linear television business and invests in new content for its streaming platform.

Equity analysts covering Disney have set an average 12-month price target of $135.20, implying potential upside of approximately 20% from current levels. Among the 26 analysts with published forecasts, 19 maintain buy ratings, six hold neutral stances and one recommends selling, reflecting a generally positive outlook on Disney’s diversified portfolio of theme parks, studio franchises and direct-to-consumer offerings.