Revenue is strong at Disney amid succession limbo

Disney reported a solid $26 billion in fiscal first-quarter revenue, well above Wall Street forecasts. According to Bloomberg, it is also closing in on a historic leadership transition, with the board coalescing around Josh D’Amaro as the next CEO.

A Disney veteran since 1998, D’Amaro, 54, had leadership roles at resorts in California, Hong Kong, and Florida. He currently serves as the chairman of the experiences division, which includes parks and products. The division has delivered consistent profitability.

If the board confirms the vote in the coming week, he will succeed Bob Iger.

Another competitor for the role is Dana Walden, the co-chairman of entertainment.

The next CEO will inherit a complex landscape, according to analysts.

While Disney’s experience division generated over $10 billion in sales, it warned that international tourism is cooling. There was a 6% dip in foreign visitors to the US last year, fueled by geopolitical tensions, tariffs, and stricter visa screenings.

Disney’s stock dropped 7% following its earnings report. Experts note that investors are worried about the company’s high production costs, despite a 72% surge in operating income in the streaming division.

Sports operating income fell 23%, in part due to a temporary blackout of Disney’s networks on YouTube TV that the company says cost $110 million in revenue.