Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Monday, February 2nd, and I'm your host, Kim Khan. Our top story so far,

Punct satanee Phil saw his shadow this morning and retreated into his den. Mickey Mouse released earnings this morning, and the stock retreated too.

So, is it six more weeks of Disney shares treading water?

Disney's among the biggest decliners in the S&P 500, after offering a lackluster outlook

and warning that costs are set to rise in its sports and entertainment units,

casting a shadow over an otherwise solid quarter.

For fiscal 26, the company reiterated its forecast for double-digit adjusted EPS growth

versus 2025 and $19 billion in cash provided by operations.

Disney also says it remains on track to buy max $7 billion in stock this year.

For the current quarter, Disney expects modest growth and experiences

operating income, signing international visitation headwinds at domestic parks, pre-launch costs

for the Disney Adventure cruise ship, and pre-opening costs for the World of Frozen at Disneyland

Paris. In sports, Q2 operating income is guided to decline about $100 million, due largely to new

W.W.E. Rights costs, while entertainment operating income is expected to be roughly similar

to Q2 2025. Analysts at JPMorgan noted that Q2 guidance is below their expectations for

entertainment and sports while in line for experiences. Well, Sargo said Q2 guidance came in below its estimates

across all three segments. Meanwhile, Bloomberg reports that Disney's board is set to name

theme parks chief Josh DeMorrow as the company's next CEO, with a vote expected in the coming

week. If approved, Tomorrow would succeed Bob Iger, who led Disney from 2005 to 2020, and returned

to the top job in 22.

Recent reports suggest Iger wants to step down before his contracts expires on December 31st.

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