11:42 AM EST, 01/16/2025 (MT Newswires) -- Walt Disney's ( DIS ) fiscal Q1 results are likely to benefit from "strong" film performances, but its Experiences segment will be affected by pre-opening costs and two hurricanes, BofA Securities said in a report Thursday.

In the last few quarters the company's Experiences segment was "challenged by difficult comps, wage inflation and now preopening costs for new cruise ships," BofA said, adding that it expects fiscal Q1 will be the lowest point of the fiscal year, impacted by cruise ship pre-opening costs and the effects of two recent hurricanes.

The company's Entertainment segment is projected to benefit from strong box office results, driven by film franchises like Moana 2 and Mufasa: The Lion King, BofA said.

Disney's ( DIS ) fiscal year 2025 guidance suggests "significant" investment in direct-to-consumer initiatives, such as technology and product developments, which could provide a more conservative outlook, BofA said.

While there are many factors at play in Q1 and into fiscal-year 2025, Disney's ( DIS ) "best in class" assets, including premium IP, sports brands, and iconic theme parks, position the company well for the long term, the report said.

For fiscal Q1 the brokerage said it continues to project earnings per share of $1.40, revenue of $25.2 billion, and operating income of $4.39 billion. It also continues to expect fiscal year 2025 EPS of $5.36 and operating income of $17.1 billion.

BofA reiterated a buy rating on Disney ( DIS ), with a price target of $140.

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