Walt Disney to Benefit From Strong Theme Park Attendance, Cruise Fleet Expansion, BofA Says

04:54 PM EDT, 09/29/2026 (MT Newswires) -- Walt Disney's (DIS) fiscal fourth quarter will likely benefit from strong theme park attendance and the expansion of its cruise ship fleet, BofA Securities said in a note Tuesday. Global guests grew 4% in the fiscal third quarter and attendance increased by 3% at domestic parks, Disney Chief Executive Josh D'Amaro said during its most recent earnings call last month. "It's important, I think, to highlight that we're performing significantly better than our competition and, in doing that, delivering strong volume and per cap spending results," D'Amaro said, according to a FactSet transcript. "And to remind everyone, we're achieving this even during a period where there's a fair amount of macro uncertainty." Disney's theme park attendance continues to be positive on a global basis, in contrast to rivals, BofA analysts, including Jessica Reif Ehrlich, said. This comes as some other theme park operators have flagged soft attendance. Attendance at Comcast's (CMCSA) theme parks across the Orlando market weakened in June, a trend that continued into the third quarter, co-CEO Mike Cavanagh said during the second-quarter earnings call in July. United Parks & Resorts (PRKS) reported a 2.9% year-over-year drop in second-quarter attendance last month. Disney's cruise line unit added its latest ship, the Disney Adventure, in March following the addition of the Disney Destiny in November 2025. Disney said in March that it planned to expand the fleet to 13 ships by 2031. The addition of two new cruise ships should benefit Disney heading into the quarterly print, Ehrlich said. However, disappointing performance of "Moana" and "The Dog Stars" will likely drive weaker fourth-quarter revenue in Disney's entertainment business, BofA said. "Moana," which released on July 10, has generated $323 million in worldwide box office, while "The Dog Stars," which hit theaters on Aug. 28, brought in $38.9 million, according to Box Office Mojo. This year's leading movie "Spider-Man: Brand New Day" has made $2.50 billion so far this year. BofA reiterated its buy rating on Disney's stock with a $125 price target. Disney is laying off about 300 employees, mostly in human resources and technology, CNBC reported Tuesday, citing a person familiar with the matter. That follows two rounds of job cuts earlier this year, according to media reports. "Recent press indicates Disney sees opportunity for cost reductions, with savings likely to be largely reinvested into (direct to consumer)," according to the BofA note. "In our view, the key driver for near term share performance will be anticipation regarding (fiscal 2027) outlook and the potential to re-accelerate Disney's growth trajectory." The firm lowered its 2026 revenue forecast to $101.12 billion from $101.24 billion, driven by a minor trim in fourth-quarter revenue expectation to $24.72 billion. The brokerage kept its full-year and fourth-quarter adjusted earnings per share estimates unchanged at $6.96 and $1.70, respectively. For fiscal 2027, BofA nudged its revenue projection up to $105.16 billion from $105.12 billion, while maintaining its adjusted EPS forecast at $7.52. In July, Netflix (NFLX) posted second-quarter revenue below Wall Street's estimates and narrowed the full-year sales guidance. Media and connectivity giant Comcast's (CMCSA) earnings per share declined year over year in the second quarter due to an unfavorable 2025 comparison, which was boosted by gains from its interest in Hulu.